On July 28, Qualcomm announced its financial results for the third quarter of 2021. The technology division, Qualcomm CDMA Technologies (QCT) smartphones, RF front-ends, and IoT vehicle chips all showed profit growth.
According to Qualcomm’s newly released financial statements, GAAP third-quarter sales increased 65% year-on-year to $8.06 billion, pre-tax profit increased 160% to $2.257 billion, and net income increased 140% to $2.027 billion. Non-GAAP sales increased 63% to $4.89 billion, pre-tax profit increased 131% to $1.104 billion, and net income increased 124% to $2.2 billion.
QCT, the technology sector, generated most of Qualcomm’s revenue, reaching $6.472 billion, an increase of 70% compared to the same period last year. The next biggest revenue was from Qualcomm Technology Licensing (QTL), an intellectual property licensing division, with sales of $1.489 billion, up 43% from the same period last year. Among semiconductor sales handled by QCT, RF front-end sales increased 114% year-on-year to $957 billion, automobiles increased 83% year-on-year to $253 billion, and IoT sales increased 83% year-on-year to $1.399 billion. All of them have achieved remarkable growth. Among them, RF front-end chips, which are an important part of 5G communication, are growing at an outstanding rate.
Qualcomm is one of the major suppliers in the 5G space. Qualcomm CEO Cristiano Amon said that he prioritized the growth of the RF front-end business and expressed his view on the growth of smartphones and RF front-end chips, which accounted for the majority of sales in the third quarter.
In addition, there are reports that the industry is looking at how Qualcomm, a fabless company, will overcome the chip shortage, given that Intel announced on July 26 that it will produce new chips in partnership with Qualcomm. Qualcomm is said to pay a $760 million dividend in the third quarter and a $630 million share buyback. Qualcomm shares were up 3% at one point in after-hours trading. Related information can be found here.