Qualcomm Touts Phone Chips That Use Satellite Power: CES Update

(Bloomberg) — The Consumer Electronics Show is underway for another day, with more substantial crowds hitting the Las Vegas event after two years of Covid-19 disruptions.

(Bloomberg) — The Consumer Electronics Show is underway for another day, with more substantial crowds hitting the Las Vegas event after two years of Covid-19 disruptions.

Friday is the second official day of the convention, which runs through the weekend. For company executives, bankers and investors, it’s also been a chance to speed date — a rare opportunity to have meetings with everyone in one city. 

Buzzy topics at the conference have included the recent spate of tech layoffs, the economy in China and woes for electric-vehicle maker Tesla Inc.

Read more: See Thursday’s CES updates, including news from BMW and Mobileye

Qualcomm CEO Says New Chips Will Let Phones Connect Anywhere (6 p.m. New York)

Qualcomm Inc. Chief Executive Officer Cristiano Amon said his announcement Thursday of chips that will incorporate satellite technology into phones, teaming up with Iridium Communications Inc., is just the beginning for that advanced kind of connection. New smartphones featuring the technology will be able to connect anywhere and the capability will fit inside standard handset designs, he said. Later, Qualcomm and its customers will bring similar capabilities to many more devices, including personal computers and cars.

Asked about demand for his chips, Amon said the automotive market has been more resilient than other customers. That’s being helped by the need for more chips per car rather than an overall increase in the number of cars sold, he said in a interview with Bloomberg Television.

Smartphone shipments haven’t yet recovered to pre-pandemic levels, Amon said. While the phone market is now largely driven by upgrades, rather than new consumers buying their first device, 5G systems are still being deployed. The new faster wireless network, and an upcoming enhanced version, will tempt consumers to trade in their old handsets, he said.

Mercedes-Benz Touts Plans to Build Fast EV Chargers (5:30 p.m. New York)

Markus Schaefer, Mercedes-Benz Group AG board member and chief technical officer, used the show as a chance to promote the automaker’s plans to build 10,000 electric vehicle fast chargers around the world and help tackle range anxiety, which he said is still “absolutely” a hurdle to widespread adoption.

“We need a premium charging experience, and that’s exactly what we’re targeting,” Schaefer said in an interview with Bloomberg TV.

Schaefer said the burgeoning EV market is still “very fragile,” which explains why the company recently adjusted prices for its most expensive models in China. Tesla also recently boosted incentives and slashed prices to keep up with cooling demand in the largest EV market.

Delta Makes Wi-Fi Free as It Prepares for Travel Surge (4:30 p.m. New York)

Delta Air Lines Inc. sees a “very, very strong” year for travel in the US during 2023, Chief Executive Officer Ed Bastian said in a Bloomberg Television interview at CES.

The carrier announced Thursday that it would provide free onboard Wi-Fi for all customers, regardless of which class they fly, starting Feb. 1. The change, offered with connectivity partner Viasat Inc., beats Delta’s peers to a long-desired benefit.

Delta has tested SpaceX’s Starlink satellite-based internet service and decided it’s “not ready for prime time,” Bastian said when asked about further tech partnerships. “As technology continues to expand and people continue to develop in this space, there will be new opportunities for us.”

While no major US carrier uses Starlink, it’s agreed to provide in-flight internet service for Hawaiian Airlines as early as this year.

–With assistance from Sean O’Kane, Ian King and Caroline Hyde.

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