Handset Products Pulled Qualcomm's Good Q1 Results

For the first fiscal quarter of 2025, Qualcomm posted double-digit growth in revenues and profits. Net income increased 15% to $3.1 billion, as overall revenue grew 17% to $11.6 billion.

Qualcomm CEO Cristiano Amon highlighted the success of the company’s handset revenue in the period, driven by high demand for premium smartphones in China and a decision by Samsung to use its processors for Galaxy S25 phones. Handset revenue grew 13% year-on-year to $7.5 billion. “We are encouraged by the number of AI features, which has nearly doubled in the Galaxy S25 series,” Amon said on an earnings call. “We expect this trend to continue as part of the transition to AI smartphones.”

Qualcomm CFO Akash Palkhiwala said higher consumer demand for premium devices in China is a long-term trend as its customers continue to gain share. “We had a higher share, of course, at Samsung. They’re using us globally in the GS25, so that helps purchases that went into the December quarter before the phone launch.”

He said the increased sales in China and the launch of the Galaxy S25 handsets are sustained long-term drivers in our business that position us well as they look at the second half of the fiscal year. Amon noted it is the first quarter in which the division broke the $10 billion mark, with record handset and automotive sales. “Our mobile roadmap is the strongest in our history with exceptional traction for Snapdragon in premium-tier handsets and we are delivering growth across our diversification initiatives,” he said.