How Has Qualcomm’s Revenue Mix Changed In The Last 5 Years?

-13.53%
Downside
169
Market
146
Trefis
QCOM: Qualcomm logo
QCOM
Qualcomm

Qualcomm’s revenue from other segment as percentage of its total revenue has declined significantly, since it sold-off Omnitracs division in 2013. The company’s revenues from this segment declined from $562 million in 2013 to $198 million in 2015. Qualcomm’s Omnitracs business was about sophisticated fleet management and tracking technology for long-haul trucks.  However, the decision made sense for Qualcomm as the Omnitracs business was uncorrelated with its core chipset and licensing business and the sell-off resulted in an immediate EPS gain for the company.

Currently, Qualcomm’s other segment revenues comprises its revenues from small cells, data center and other wireless technology and service initiatives. We expect the revenue growth from this segment to pick up going forward, as the demand for small cells increase, due to rise in wireless broadband traffic. Moreover, Qualcomm’s data-center initiative can further boost its revenues going forward, as high performance and low power requirements of chips designed for mobile phones might be a good fit for servers in data centers, where the power density in racks has become a limiting factor.

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See the links below for more information and analysis about Qualcomm:

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Qualcomm