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Qualcomm aims for $15 billion in data center revenue by 2029 amid smartphone decline
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Summary
Qualcomm is pivoting its business strategy in response to a significant 20% drop in smartphone sales. The company is now focusing on expanding its data center operations, with ambitious revenue projections that estimate growth from $650 million in Q1 2027 to an impressive $15 billion by 2029. This strategic shift highlights Qualcomm's commitment to diversifying its revenue streams and capitalizing on the growing demand for data center solutions.
Takeaways
- Qualcomm is shifting focus from smartphones to data centers due to declining sales.
- The company projects a substantial increase in data center revenue over the next few years.
- This move reflects a broader trend in the tech industry towards data-centric solutions.
Why it matters
Qualcomm's pivot to data centers underscores the industry's shift towards cloud computing and data management, which are critical for future growth.
PMs
Product managers should note this trend as it indicates where investment and innovation are likely to occur, shaping future product roadmaps.
Developers
Developers should be aware of the increasing demand for data center technologies, which may open up new opportunities for software and infrastructure development.
Students & job seekers
Students and job-seekers should consider focusing on skills related to data management and cloud computing, as these areas are likely to see significant growth in the coming years.
Covered sources
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The Verge AI
Qualcomm is betting big on data centers as smartphone sales sinkQualcomm is shifting its focus to data centers as smartphone sales decline by 20%. The company plans to significantly increase its data center revenue, forecasting growth from $650 million in Q1 2027 to $15 billion by 2029.