消费者对高端手机的支出(尤其是在中国)的回升，帮助两家公司上季度的收入和利润均超出分析师的预期。向新领域的扩张也支撑了业绩。高通和 Arm 正在深入推进计算领域，人工智能支出带来了提振。高通已成功进军汽车芯片领域。Chip companies Qualcomm (QCOM.US) and Arm (ARM.US), which heavily rely on the smart phone market, released their financial reports on Wednesday, showing that the smart phone industry is in a difficult recovery.
Finance and Economics App noticed that chip companies Qualcomm (QCOM.US) and Arm (ARM.US), which heavily rely on the smart phone market, released their financial reports on Wednesday, showing that the smart phone industry is in a difficult recovery.
Both companies pointed out that demand for high-end models is recovering, but did not indicate that the foundation of the entire industry has stabilized. Qualcomm's report received better feedback, and optimistic sales forecasts helped its stock price rise in late trading. Meanwhile, Arm's outlook is more cautious, dragging down the company's stock price.
Consumer spending on high-end phones, especially in China, is rebounding, helping both companies exceed analysts' expectations for revenue and profit last quarter. Expansion into new areas also supported performance. Qualcomm and Arm are advancing further into the computing domain, with AI spending providing a boost. Qualcomm has successfully entered the automotive chip sector.
These two companies have been long-time partners, but are increasingly becoming rivals, seen as leaders in the smart phone industry. Qualcomm is the largest seller of smart phone processors, while Arm develops most of the underlying technology used in the industry.
Both companies are benefiting from the shift towards higher-end phones. Although overall shipments only grew by 4%, Arm's mobile revenue increased by 40%. Qualcomm's market share in China is also continuously expanding. This year, Android phone sales revenue in China grew by 40%.
The company expects overall phone sales to grow by about 5% or less next year, indicating that the company expects no wide-ranging recovery in phone sales. Many consumers are no longer upgrading their phones frequently, a problem that has been plaguing most enterprises in the industry.
Qualcomm and Arm released quarterly earnings within minutes on Wednesday and held overlapping conference calls. For these two companies embroiled in escalating legal disputes, this is a noteworthy time.
Last month, Arm took action to revoke a license allowing Qualcomm to use its intellectual property to design chips. Previously, Arm filed breach and trademark infringement lawsuits against Qualcomm in 2022.
On Wednesday, Arm expects the quarterly revenue for December to be between 0.92 billion and 0.97 billion dollars. The mid-point of this range will be below the analyst's forecast of 0.9509 billion dollars.
Qualcomm expects sales for this quarter to reach 10.5 billion to 11.3 billion dollars. According to data compiled by Bloomberg, analysts' average estimate is 10.5 billion dollars. After deducting certain items, earnings will reach $3.05 per share, exceeding Wall Street's expectations.
The automotive market is a major highlight for Qualcomm, despite the slowdown in the automotive market affecting other chip manufacturers. Automotive chip business revenue for the 2024 fiscal year increased by 55%. Qualcomm stated that it has been winning new business, helping it surpass its peers.
"I think you should consider that our automotive revenue is less sensitive to market changes and more related to newly launched vehicle models," CEO Cristiano Amon said during a conference call with analysts. "This reflects changes in market share."
