Qualcomm CFO Outlines Strategy Beyond Apple Partnership
On September 24, Qualcomm renewed its global patent license agreement with Apple for an undisclosed duration and financial terms. While the deal extends a key part of their relationship, it comes as Apple increasingly shifts to using in-house modem chips rather than those from Qualcomm. The new licensing arrangement ensures that even when Apple uses self-developed modems, they still rely on technologies covered by Qualcomm’s patents. Qualcomm CFO Akash Palkhiwala emphasized the company's broader transformation strategy beyond its smartphone and Apple-centric business model. He outlined a vision for three major revenue streams—data centers, smartphones, and automotive/IoT—to be roughly equal in size within two years. The company is aiming to expand into data center infrastructure with a $15 billion target by 2029 as part of an overall non-handset revenue goal of $40 billion. Qualcomm has already made strides in this direction, including a recent partnership with Amazon for AI-focused silicon development and ongoing collaborations with Meta. The company's automotive segment is growing rapidly, having increased revenues by 61% year-over-year to $1.59 billion.
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Topics: AI strategy Apple Business transformation Patent licensing Qualcomm