While the smartphone market saw a lull in 2023, as the Covid-19 pandemic eased and economic uncertainty weighed on consumer spending, things have been looking up of late. Per Counterpoint, worldwide smartphone shipments grew 6% year on year over the second quarter of 2024. This should benefit Qualcomm's CDMA Technologies (QCT) segment, which sells application processors, modems, and software for mobile devices, networking equipment, and consumer electronics. Moreover, Qualcomm is also seeing higher demand from China, where local OEMs have increased their uptake by over 40% compared to last year, as demand for premium Android devices grows at the expense of Apple's iPhone. About 40% of the company's sales were made to companies headquartered in China and Hong Kong over the last quarter. The surging interest in generative artificial intelligence is also benefiting Qualcomm.