Tech

Qualcomm fuels smartphone demand slowdown to boost its chip business


Qualcomm forecast fourth-quarter revenue below estimates on Wednesday, bracing for tough economic conditions and a slowdown in smartphone demand that could hit its main handset chip business. .

The chip designer still beat expectations for adjusted revenue in the third quarter.

By Qualcomm The forecast comes at a time when leading chipmakers including Micron Technology and Texas Instruments have warned of cooling consumer electronics demand.

Smartphone sales are under pressure as soaring inflation, rising recession risks and repeated COVID-19 lockdowns in China force consumers to rein in spending. According to data from IDC, global smartphone shipments will fall by 3.5% this year.

The Ukraine crisis and China’s lockdown have also exacerbated supply-chain woes and hurt demand, forcing many phone makers to cut chip orders.

Qualcomm is looking to diversify into areas like automobiles, but its phone chip business still accounts for more than half of total sales.

The company forecasts current quarter revenue of $11 billion (approximately 87586 crore) to $11.8 billion (approximately 93,956 crore), compared with analyst estimates of $11.87 billion (approximately $11.87 billion) 94,513 crore), according to Refinitiv data.

It projects adjusted earnings per share of $3 (approximately Rs. 160) to $3.30 (approximately Rs. 170), versus an estimate of $3.23 (approximately Rs. 170). 180 Rs.).

Qualcomm says the midpoint of its Q4 forecast includes the estimated impact of a roughly 20 cent drop in earnings per share due to macroeconomic difficulties and low global handset forecasts. than.

Adjusted revenue for the quarter ended June 26, as analysts expected strong demand from Appleis 10.93 billion USD (approximately Rs 87,027), compared with an estimate of 10.88 billion USD (approximately Rs 86,640).

Separately, Qualcomm said it has also renewed its patent licensing contract with SAMSUNG Electronics until the end of 2030. It also agreed to expand the use of the Snapdragon platform to future high-end Samsung Galaxy products, including Samsung Galaxy phones.

© Thomson Reuters 2022




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