Introduction to Qualcomm’s Oryon CPUs
Qualcomm recently unveiled its plans for the third generation of its Oryon CPU cores, shifting focus away from the second-generation Oryon cores in favor of its highly anticipated AI PC project. Set to launch in 2025, these new processors aim to penetrate a price-sensitive market with devices starting as low as $600.
Market Ambitions and Projections
With an ambitious target of capturing 30-50% of the serviceable addressable market (SAM) for non-x86 AI notebooks by 2029, Qualcomm is stepping up its game significantly. This marks an adjustment from their earlier, more ambitious goal of achieving this target by 2027. The upcoming Oryon 3 CPUs, which will succeed the Snapdragon X Plus chips, promise substantial enhancements in performance and efficiency.
Competitive Challenges Ahead
Despite these exciting advancements, Qualcomm faces a competitive landscape that includes heavyweights like MediaTek and NVIDIA, both of which are poised to enter the non-x86 notebook market by 2025. Qualcomm’s projected annual revenue of $4 billion from the PC segment by 2029 is a stark contrast to Intel’s $29 billion in chip sales from 2023, underlining the challenges ahead.
In addition to PC sales, Qualcomm aims to diversify its revenue streams, targeting $8 billion from automotive chips, $4 billion from industrial applications, and $2 billion from virtual reality products by 2029. As the competition in the ARM-based AI PC market heats up, companies must significantly enhance performance to secure their footprint.
