Qualcomm is set to make a significant entry into the PC CPU market, targeting a mid-2024 launch for its Snapdragon X Elite SoC. Cristiano Amon, the president and CEO, shared this strategy during the Q1 2024 earnings call, emphasizing the chipset’s compatibility with the upcoming version of Microsoft Windows featuring advanced AI capabilities. The aim is to align the release with back-to-school sales, which typically peak in August or September.
The Snapdragon X Elite, initially introduced last year, boasts impressive features such as extended battery life and potent AI capabilities, positioning it as a formidable competitor to Intel and Apple. Amon expressed confidence in the availability of a variety of X Elite-equipped models, noting the increasing design wins since the platform’s announcement in October.
The chipset includes the Oryon processor and custom Arm-compatible cores developed by Qualcomm through its acquisition of Nuvia. Amon highlighted the growing industry focus on on-device AI in PCs, anticipating that the Snapdragon X Elite will establish itself as the benchmark for on-device AI and Copilot experiences, delivering top-tier performance and battery life for next-gen Windows PCs.
In addition to the PC market strategy, Amon reported positive financial results for Q1 2024, with $9.94 billion in revenue, a 5% YoY increase. Net income rose by 24%, reaching $2.77 billion. The company observed a 16% growth in handset kit sales and a significant 31% surge in automotive revenue. However, IoT revenue experienced a 32% dip, attributed to industry-wide challenges leading to excess inventory for manufacturers.
Despite not obtaining a license to sell 5G equipment to Huawei, Qualcomm remains optimistic about its mobile business. The company’s focus on AI-centric SoCs, demonstrated in the successful launch of Samsung’s Galaxy S24 series, is expected to drive future growth. Amon also hinted at plans to extend the Elite X technology to IoT and automotive applications.
Looking ahead to Q2, Qualcomm anticipates revenue between $8.9 and $9.7 billion, with potential seasonal fluctuations in the modem business. While the earnings call covered various aspects of Qualcomm’s business, there was no mention of the company’s exploration into server diversification, a topic previously explored in the late 20-teens.