On Tuesday, Qualcomm (NASDAQ: QCOM ) unveiled its plans to collaborate with luxury automotive manufacturers Mercedes (ETR: MBGn ) and BMW (ETR: BMWG ), providing semiconductor chips designed to power in-car infotainment systems.
Qualcomm has officially announced its collaboration with BMW, where it will provide chips to enhance in-car voice command functionality. Additionally, Qualcomm will supply chips for the upcoming Mercedes E class models, slated for release in the United States in 2024.
During an interview at the Munich auto show, Qualcomm's Chief Executive, Cristiano Amon, expressed the company's ambitious outlook for the automotive sector. Amon stated that Qualcomm anticipates generating $4 billion in revenue from this sector by 2026, with further growth expected to reach $9 billion by the end of the decade.
"One of the things we're very focused on the company is to find new areas for growth... automotive is one of those areas," said Amon.
Qualcomm, the leading supplier of chips for smartphones, has experienced a downturn in the smartphone market over the past year. However, the company is diversifying its efforts by collaborating with automakers to support a wide range of functions within vehicles, including infotainment systems and advanced driver assistance systems. In its most recent quarter, Qualcomm's automotive revenue saw a remarkable 13% growth, demonstrating resilience and success in this sector, even as its smartphone projections fell short of analyst expectations.
Shares of QCOM are down 0.18% in early trading Tuesday morning.
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