Internet of Things (IoT) Business of Sierra Wireless’s

Sierra Wireless, an IoT semiconductor and service provider, has a struggling starting year 2020 for the very obvious reason the pandemic. One of the major reasons was the supply-chain disruption because of the global economic lockdown for COVID – 19. Moreover, it also coupled with certain legacy business lines that lead to the fall of the entire system and followed by a fall in revenue.

Sierra withdraws its support for this entire year as coronavirus will affect the business for a long period. No government can predict what will be the exit strategy as there is no vaccine yet, the safest place for people is to stay home. Though some recent updates and changes suggest better days are ahead for companies like Sierra.

Details of headline numbers are mentioned in the chart

From the above chart, it is pretty clear that the revenue decline is 9%, Sierra’s IoT sector has faced 6% revenue decline compared to the last year, which was around $78.8 million. However, Sierra is quite optimistic about the coming few years as every sector is moving online rapidly. They expect 17% growth (around $27 million, including $4.0 million in revenue from M2M Solutions in Australia).

In an interview, Sierra said that they are still facing competition from lower-priced competitors despite big declines in hardware sales. The other part of the business, i.e. embedded broadband declined 1% to $78.8 million within the first quarter of the year. Better sales to automotive manufacturers were also affected by fewer sales to mobile computing customers like Dell, Lenovo, etc.