Qualcomm’s Vision For the Future

Qualcomm is a fascinating company. Qualcomm (QCOM) designs, develops, manufactures and markets digital communications products and services based on CDMA, OFDMA and other technologies. Most people are familiar with Qualcomm being used either as chipsets or their technology licensed into other chipsets – and the technology is pervasive. This post discusses and links you to Qualcomm’s vision for the future.

Qualcomms’s Vision For the Future

Qualcomm chips and/or technology is pervasive in almost every smartphone in the world. The company is an enabler of communications and is at the forefront of cracking new spaces and opening up avenues for hundreds of companies to flourish. Initially Qualcomm started off as simply a focused company on some radio technologies and realized that they could build the chipsets and navigated into a gold mine by making some strategic bets in the past 20 years. The company timed perfectly the maturity of the industry and enabling communication for smartphone launches and now that the smartphones have saturated (atleast in the western world), the company is looking at other avenues for new growth. Steve Mollenkopf, CEO of Qualcomm, discusses their vision in the video below (video length: 1h27m). I invite you to watch it – whether you are interested in Qualcomm as an investor or simply interested in the technology space and understand where things are headed in the near future. For the investment-focused folks, be sure to also check out the slides from 2014 New York Analyst Day held a couple of weeks ago.

Disclosure: Long QCOM. My full list of holdings is available here.

10 thoughts on “Qualcomm’s Vision For the Future

    • Hi Henry,
      I remain long QCOM. I would love to add more to my position at these levels. Re the buybacks and share count, Im not sure what happened in 2012-2013, as even after announcing the buyback and partially completed, the share count rose. I looked into it a bit and asked around in the DGI community, but didnt come up with an answer. Here are the details:

      Mar 2012 QCOM share buyback announcement = $4B
      Mar 2013 QCOM share buyback announcement = $5B
      Mar 2014 QCOM share buyback announcement = $5B

      Share count Sep 2012 = 1741M
      Share count Sep 2013 = 1754M (+13M)
      Share count ttm = 1723M (-31M)

      2012-2013: So, while the share buyback was announced and authorized, the company was also issuing new shares?
      2013-2014: Share count drop at an average price of $75/share = $2.3B. This is inline with the authorization.

      Let me know if you find any answers to the 2012-2013 issue. Im very interested in finding out what happened.
      R2R

  1. R2R,

    Thanks for the quick background about QCOM. I think I’ll add the company to my watch list now. The company is a market leader that meet all the of our screening metrics and engages in strong buyback programs. What’s not to love? Thanks for bringing the company to our attention, if it’s greatly appreciated!

    Bert, one of the Dividend Diplomats

    • You are welcome, Bert.
      Unfortunately, due to the nature of tech companies, its hard to find long track records of paying dividends and growing those dividends for years or decades. QCOM has a 12 yr streak and I think that is bound to continue for a while.

      Best wishes
      R2R

  2. R2R,

    Glad to see QCOM get some love in the DGI growth community. In my book it’s one of the best value tech companies you can buy right now. That’s why I added them to my portfolio only a couple of days ago. Long QCOM, for sure!

    Cheers,
    NMW

    • NMW,
      QCOM is a fascinating company and deserves more love than it currently does. Ive been an investor for a while now, and want to buy more. Glad to have you as a fellow shareholder.

      cheers
      R2R

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