News by Andrew Kameka on Friday November 16, 2012.
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Qualcomm is so bullish on the prospects of mobile phone sales that the chipset manufacturer anticipates that 5 billion smartphones will be sold between 2012 and 2016. At its annual investors meeting, Qualcomm CEO Paul Jacobs forecast that the rising demands for smartphone would lead to doulbe digit earnings growth for his company over the next five years, and continuous growth in the mobile industry at large. Qualcomm's recent earnings beat expectations thanks to $4.87 billion in revenue.
Though TI recently decided to move away from developing mobile chipsets, Qualcomm has flourished in recent years thanks to an uptick in manufacturers selling phones using its Snapdragon line of processors. The rise of LTE networks, which require phones with new chipsets and more efficient battery management, has improved the company's position further. It now sees tablets as the next great opportunity, expecting 650 million tablets to be sold over the next three years.
Whether Qualcomm manages to be as successful as its CEO claims, Jacobs' estimate is ambitious but not outlandish. IDC recently reported that there were 181 million smartphone sales last quarter, and Gartner estimates that 821 million smartphones will be sold in 2012. If current trends hold and the popularity of smartphone purchases increases, especially in emerging markets with booming populations, an additional 4 billion smartphone sales by the end of 2016 seems feasible.source: BusinessWeek, via: PocketLint
Andrew is based in Miami, Florida.