Strong Demand for Smartphones Will Continue: Qualcomm CEO
Demand for smartphones and connectivity from everyday products will continue to grow, especially this year, Qualcomm CEO Paul Jacobs told CNBC from the Mobile World Congress in Barcelona, Spain. Qualcomm produces components for mobile devices, including Samsung and Android smartphones, as well as Apple iPhones.
"We're seeing smartphone demand strong around the world. In our guidance we projected roughly flat average selling prices for this year, tremendous growth in our revenues going from $19 billion to between $23.4 (billion) to $24.4 billion for 2013." he said. "We really are seeing a lot of growth. Some is in the high end, some is low end, with China is growing very strongly. It's going to be the number one smartphone market in the world."
Jacobs added: "We are seeing strong growth around the world for both high end and low end smartphones. The smartphone tail winds are there and they are strong."
Qualcomm is demonstrating a new technology at the conference which is a successor to what the company tried to do with mobile TV, Jacobs said, adding that the new system will run on 4G. "When there are a lot of people watching, you're still going to get good quality video," he said.
Jacobs pointed to another growth trend of "Internet for everything," which will see consumers demanding increased connectivity for products from cars and home appliances to lighting. Earlier on Monday, AT&T's CEO Randall Stephenson echoed this trend, calling cars "smartphones on wheels."
After the interview, CNBC's Jim Cramer noted that "we live by our smartphones these days and people forget that (Qualcomm) is the company behind all of that."