Qualcomm Posts 12% Drop in Sales
A Qualcomm booth at a trade exhibition in Shanghai in November.
Photo:
Li Jing/Zuma Press
Qualcomm Inc.
QCOM -1.89%
gave a muted outlook as it posted a 12% drop in sales, reflecting softness in the global smartphone market.
The designer of mobile-phone chips on Thursday said sales in the quarter fell to $9.5 billion, short of Wall Street’s expectation of $9.6 billion. The company said sales in the current quarter could fall even more steeply as it forecast revenue between $8.7 billion and $9.5 billion, also missing estimates from analysts surveyed by FactSet.
Smartphone sales have slumped along with PC shipments this year as recession concerns weigh on consumer demand. Covid-19 restrictions in China dented shipments in the large market for handsets. Smartphone shipments fell 12% last year and 18% in the final quarter, according to data provider Canalys.
Qualcomm said handset demand remained weak and worsened in several enterprise and industrial segments. Automotive demand, it said, remained strong. It also forecast market conditions to improve in the second half of the year, echoing the view expressed by other chip makers.
The San Diego, Calif.-based company also reported that net income in the quarter fell 34% from the year-ago period to $2.2 billion.
Qualcomm said its revenue from handsets in its latest quarter was $5.8 billion, down 18% from the year-ago period. Its internet-of-things business grew 7% to $1.7 billion in sales.
Sales to the automotive industry climbed by 58%, although that business remains a relatively small chunk of the company’s overall revenue. Automotive-chip sales have remained relatively resilient amid the wider semiconductor slump.
Texas Instruments Inc.
last week said the auto industry was a notable exception amid a wider market slump.
Advanced Micro Devices Inc.
Chief Executive
Lisa Su
on the chip company’s earnings call this week indicated some of the market slump may be nearing an end. “We do believe the first quarter is the bottom for our PC market,” Ms. Su said.
Qualcomm said it had taken action to control costs and was ready to take further action if needed.
Write to Meghan Bobrowsky at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
A Qualcomm booth at a trade exhibition in Shanghai in November.
Photo:
Li Jing/Zuma Press
Qualcomm Inc.
QCOM -1.89%
gave a muted outlook as it posted a 12% drop in sales, reflecting softness in the global smartphone market.
The designer of mobile-phone chips on Thursday said sales in the quarter fell to $9.5 billion, short of Wall Street’s expectation of $9.6 billion. The company said sales in the current quarter could fall even more steeply as it forecast revenue between $8.7 billion and $9.5 billion, also missing estimates from analysts surveyed by FactSet.
Smartphone sales have slumped along with PC shipments this year as recession concerns weigh on consumer demand. Covid-19 restrictions in China dented shipments in the large market for handsets. Smartphone shipments fell 12% last year and 18% in the final quarter, according to data provider Canalys.
Qualcomm said handset demand remained weak and worsened in several enterprise and industrial segments. Automotive demand, it said, remained strong. It also forecast market conditions to improve in the second half of the year, echoing the view expressed by other chip makers.
The San Diego, Calif.-based company also reported that net income in the quarter fell 34% from the year-ago period to $2.2 billion.
Qualcomm said its revenue from handsets in its latest quarter was $5.8 billion, down 18% from the year-ago period. Its internet-of-things business grew 7% to $1.7 billion in sales.
Sales to the automotive industry climbed by 58%, although that business remains a relatively small chunk of the company’s overall revenue. Automotive-chip sales have remained relatively resilient amid the wider semiconductor slump.
Texas Instruments Inc.
last week said the auto industry was a notable exception amid a wider market slump.
Advanced Micro Devices Inc.
Chief Executive
Lisa Su
on the chip company’s earnings call this week indicated some of the market slump may be nearing an end. “We do believe the first quarter is the bottom for our PC market,” Ms. Su said.
Qualcomm said it had taken action to control costs and was ready to take further action if needed.
Write to Meghan Bobrowsky at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Denial of responsibility! Techno Blender is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.