Qualcomm (QCOM) risk factors, 2024 10-K

Qualcomm's 2024 10-K lists 21 risk factors in 9 groups. No earlier 10-K is on file to compare against, so the most company-specific risks are read out below.

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Risk factors listed
219 groups
Section length
19k wordsItem 1A

What dominates the section

  • Mobile handset exposure remains central, including Apple share gains, premium-smartphone maturity, customer demand and vertical integration.
  • China concentration spans OEM sales, licensing revenue, suppliers and potential U.S.-China technology restrictions.
  • Licensing depends on 5G patent strength, renewals and surviving governmental investigations and legal challenges.

The risks most specific to Qualcomm

  • RISKS RELATED TO OUR OPERATING BUSINESSES

    products. Consequently, to the extent Apple takes device share from our customers who purchase our integrated modem and application processor products, our revenues and margins may be negatively impacted

    Apple gaining device share from Qualcomm customers and slowing premium-smartphone demand could reduce integrated modem and application-processor revenue and margins.

  • RISKS RELATED TO OUR OPERATING BUSINESSES

    Further, while we derive a portion of our revenues from areas outside of mobile handsets, e.g., from industries such as automotive and IoT, certain product categories within those industries may in themselves be subject to high levels of customer concentration

    Qualcomm depends heavily on major licensees, including Chinese OEMs, for licensing revenue and may face payment defaults or unfavorable renewals.

  • RISKS RELATED TO OUR OPERATING BUSINESSES

    Our business, particularly our semiconductor business, may suffer as a result of our customers vertically integrating (i.e., developing their own integrated circuit products)

    Large customers such as Samsung may increasingly develop and use their own integrated circuits instead of Qualcomm products.

  • RISKS RELATED TO OUR OPERATING BUSINESSES

    We derive a significant portion of our revenues from Chinese OEMs, and from non-Chinese OEMs that utilize our integrated circuit products in devices they sell into China, which has the largest number of smartphone users in the world. We also source certain critical integrated circuit products from suppliers in China

    Qualcomm relies on Chinese OEMs, China-bound devices and Chinese suppliers, exposing it to Chinese policies and potential U.S. technology-access restrictions.

  • RISKS RELATED TO NEW INITIATIVES

    In addition, in order to successfully extend our technologies and products into new and expanded product areas, and industries and applications beyond mobile handsets, we may need to transition to new business models or transform aspects of our organization, and we may not be successful in doing so

    Expansion beyond mobile handsets into new technologies, industries and applications may require unsuccessful business-model or organizational changes.

  • RISKS RELATED TO HUMAN CAPITAL MANAGEMENT

    The continued and future success of our licensing programs requires us to continue to evolve our patent portfolio and to renew or renegotiate license agreements that are expiring

    Licensing revenue requires Qualcomm to maintain patents covering 5G and future standards and renew or renegotiate expiring agreements.

  • RISKS RELATED TO HUMAN CAPITAL MANAGEMENT

    Changes in our patent licensing practices, whether due to governmental investigations, legal challenges or otherwise, could adversely impact our business and results of operations

    Government investigations and legal challenges to Qualcomm’s patent licensing practices could force changes that reduce business performance.

  • RISKS RELATED TO INDUSTRY DYNAMICS AND COMPETITION

    Our revenues depend on our customers’ and licensees’ sales of products and services based on CDMA, OFDMA and other communications technologies, including 5G, and customer demand for our products based on these technologies

    Revenue depends on customers and licensees creating and selling products using CDMA, OFDMA, 5G and other communications technologies.

  • RISKS RELATED TO PRODUCT DEFECTS OR SECURITY VULNERABILITIES

    Failures in our products, or in the products of our customers or licensees, including those resulting from security vulnerabilities, defects or errors, could harm our business

    Defects, errors, security vulnerabilities or failures in Qualcomm products or customer products could damage sales and reputation.

  • RISKS RELATED TO INTELLECTUAL PROPERTY

    Our business may suffer due to the impact of, or our failure to comply with, the various existing, new or amended laws, regulations, policies or standards to which we are subject

    Global laws, regulations, government policies and communications standards governing Qualcomm, its customers and licensees could increase costs or restrict products.

All 21 risk factors

Headings as the filing states them, in filing order.

RISKS RELATED TO OUR OPERATING BUSINESSES

  1. 01products. Consequently, to the extent Apple takes device share from our customers who purchase our integrated modem and application processor products, our revenues and margins may be negatively impacted
  2. 02Further, while we derive a portion of our revenues from areas outside of mobile handsets, e.g., from industries such as automotive and IoT, certain product categories within those industries may in themselves be subject to high levels of customer concentration
  3. 03Our business, particularly our semiconductor business, may suffer as a result of our customers vertically integrating (i.e., developing their own integrated circuit products)
  4. 04In addition, periodic supply/capacity constraints within the semiconductor industry may further incentivize our customers to vertically integrate in an effort to secure additional control over their supply chains
  5. 05We derive a significant portion of our revenues from Chinese OEMs, and from non-Chinese OEMs that utilize our integrated circuit products in devices they sell into China, which has the largest number of smartphone users in the world. We also source certain critical integrated circuit products from suppliers in China

RISKS RELATED TO NEW INITIATIVES

  1. 06In addition, in order to successfully extend our technologies and products into new and expanded product areas, and industries and applications beyond mobile handsets, we may need to transition to new business models or transform aspects of our organization, and we may not be successful in doing so
  2. 07We may engage in acquisitions and other strategic transactions or make investments, or be unable to consummate planned strategic acquisitions, which could adversely affect our results of operations or fail to enhance stockholder value

RISKS RELATED TO SUPPLY AND MANUFACTURING

  1. 08our third-party suppliers’ manufacturing facilities, which could result in disruptions to our business or additional costs to us, and negatively impact our results of operations

RISKS RELATED TO CYBERSECURITY OR MISAPPROPRIATION OF OUR CRITICAL INFORMATION

  1. 09Our business and operations could suffer in the event of security breaches of our IT systems, or other misappropriation of our technology, intellectual property or other proprietary or confidential information

RISKS RELATED TO HUMAN CAPITAL MANAGEMENT

  1. 10We may not be able to attract or retain qualified employees
  2. 11The continued and future success of our licensing programs requires us to continue to evolve our patent portfolio and to renew or renegotiate license agreements that are expiring
  3. 12Changes in our patent licensing practices, whether due to governmental investigations, legal challenges or otherwise, could adversely impact our business and results of operations

RISKS RELATED TO REGULATORY AND LEGAL CHALLENGES

  1. 13Our business may suffer as a result of adverse rulings in governmental investigations or proceedings or other legal proceedings

RISKS RELATED TO INDUSTRY DYNAMICS AND COMPETITION

  1. 14Our revenues depend on our customers’ and licensees’ sales of products and services based on CDMA, OFDMA and other communications technologies, including 5G, and customer demand for our products based on these technologies

RISKS RELATED TO PRODUCT DEFECTS OR SECURITY VULNERABILITIES

  1. 15Failures in our products, or in the products of our customers or licensees, including those resulting from security vulnerabilities, defects or errors, could harm our business

RISKS RELATED TO INTELLECTUAL PROPERTY

  1. 16Claims by other companies that we infringe their intellectual property could adversely affect our business
  2. 17Our use of open source software may harm our business
  3. 18Geopolitical conflicts, natural disasters, pandemics and other health crises, and other factors outside of our control, could significantly disrupt our business
  4. 19Our business may suffer due to the impact of, or our failure to comply with, the various existing, new or amended laws, regulations, policies or standards to which we are subject
  5. 20There are risks associated with our debt
  6. 21Tax liabilities could adversely affect our results of operations

Other Qualcomm 10-Ks

  • 2025 10-K risk factors

    24 risks. Qualcomm relies heavily on licensing revenue from Chinese OEMs and smartphone markets.

    Filed Nov 05, 2025

About this page

Item 1A of the 10-K on EDGAR was split into its risk factors and, where the company's previous 10-K is on file, each heading was matched to last year's and the text compared word for word. The headings are the filing's own. The one-line readings and the overview were written by a language model from the text of the new, dropped, and rewritten risks; they refer to risks by position and cannot misquote a heading.

Qualcomm (QCOM) Risk Factors: 2024 10-K, What Changed | Gloomberb