Qualcomm on Wednesday forecast fourth-quarter revenue above estimates, due to tough economic conditions and a slowdown in smartphone demand, which could impact its core handset chips business.
The chip designer still exceeded expectations for adjusted revenue in the third quarter.
Qualcomm’s The forecast comes at a time when major chipmakers including Micron Technology and Texas Instruments have warned of cooling demand for consumer electronics.
Smartphone sales have come under pressure as rising inflation, rising risks of recession and repeated COVID-19 lockdowns in China force consumers to rein in spending. According to data from IDC, global smartphone shipments will decline by 3.5 percent this year.
The Ukraine crisis and China’s lockdown also crippled supply-chains and hurt demand, forcing many phone makers to cut orders for chips.
Qualcomm is trying to diversify into areas like automotive, but its handset chip business still accounts for more than half of total sales.
According to Refinitiv data, the company estimated current quarter revenue between $11 billion (approximately Rs 87586 crore) and $11.8 billion (approximately Rs 93,956 crore) as compared to analyst estimates of $11.87 billion (approximately Rs 94,513 crore). have put.
It expects adjusted earnings per share between $3 (about Rs 160) and $3.30 (about Rs 170), compared to estimates of $3.23 (about Rs 180).
Qualcomm said the midpoint of its fourth-quarter forecast includes the projected impact of a decrease of about 20 cents in earnings per share due to macroeconomic headwinds and lower global handset forecasts.
Adjusted revenue for the quarter ended June 26, when analysts expected strong demand AppleIt was $10.93 billion (approximately Rs 87,027 crore), compared to an estimate of $10.88 billion (approximately Rs 86,640 crore).
Separately, Qualcomm said it has also extended its patent license agreement samsung Electronics by the end of 2030. It also agreed to expand the use of the Snapdragon platform to future premium Samsung Galaxy products, including Samsung Galaxy phones.
© Thomson Reuters 2022