Published - September 5th, 2023 @ 1:00 PM (GMT+2)
Expanding the Horizon of Automotive Technology:
Qualcomm Technologies (NASDAQ:QCOM) and BMW Group ( OTCMKTS: BMWYY ) have expanded their existing partnership by including in-vehicle digital operating systems in their collaboration. This move goes beyond their previous agreement, primarily focused on driver assistance and automated driving technologies.
A Focus on Interior Experience:
The enhanced partnership aims to revolutionize the in-car experience by integrating advanced technologies for voice commands, communications, infotainment, and 5G connectivity. Qualcomm, a leading supplier of smartphone chips, has been diversifying its portfolio to include automotive technologies. Despite a slump in the smartphone market, the company has seen a 13% growth in its automotive revenue in the most recent quarter.
Upcoming Features & Financial Outlook:
Qualcomm has announced that it will supply BMW with chips to power voice commands and will also provide chips for the next version of Mercedes E-class models ( OTCMKTS: MBGYY ) , expected to be available in the U.S. by 2024. The company is optimistic about its financial prospects in the automotive sector, projecting revenues of $4 billion by 2026 and $9 billion by the end of the decade.
Strategic Importance for Qualcomm:
The U.S. semiconductor giant had previously announced a $30 billion pipeline in the automotive business, thanks to its Snapdragon Digital Chassis product. Automakers and their suppliers use this product for assisted and autonomous driving technology, as well as in-car infotainment and cloud connectivity.
Future Developments:
One operating platform is already available in specific BMW models, and a more advanced platform is currently in development and is expected to roll out in 2025. While no financial details of the partnership were disclosed, the collaboration is a strategic move for both companies, aiming to set new standards in the automotive industry.
Conclusion
The expanded partnership between Qualcomm and BMW signifies a pivotal moment in the automotive and semiconductor industries, promising to deliver cutting-edge technologies that enhance the in-car experience. With both companies committed to innovation, the future of automotive technology looks promising.
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