Qualcomm downbeat on smartphone sales - Mobile World Live

Qualcomm provided a gloomy outlook for the adjacent quarter, informing of a slump successful income to smartphone customers owed to an uncertain economical situation and reduced demand, though it did station a sizeable gross emergence successful its fiscal Q4 2022 (ending 30 September).

In updated guidance, Qualcomm forecast 3G, 4G and 5G handset volumes would deed a debased double-digit percent decline, from a previously-expected mid single-digit driblet successful calendar twelvemonth 2022.

Alongside the macroeconomic situation and “rapid deterioration successful demand”, the spot institution explained the easing of proviso constraints crossed the semiconductor manufacture “have resulted successful elevated transmission inventory”.

In effect, Qualcomm said its customers were present “drawing down their inventory”. The institution estimates astir eight-to-ten weeks’ worthy of physique up which could instrumentality a fewer quarters to stabilise.

As a result, Qualcomm expects the adjacent 4th could beryllium the “bottom”, with regards to inventory, arsenic manufacturers usage up their existing chips.

Apple business
In fiscal Q4, the institution posted a 22 per cent year-on-year emergence successful gross to $11.3 billion, portion nett income roseate 3 per cent to $2.9 billion.

Qualcomm president and CEO Cristiano Amon stated the uptick successful net reflected maturation crossed its chipset, IoT and automotive businesses.

He highlighted a multi-year statement with Samsung to grow the usage of Snapdragon successful Galaxy products, with the US institution besides boosted by winning much concern from Apple.

On an net call, CFO Akash Palkhiwala added Qualcomm expected to person the immense bulk of stock of 5G modems for the 2023 iPhone line-up, an summation connected its erstwhile presumption of 20 per cent.

“Beyond this, determination are nary changes to our readying presumption and we are assuming minimal publication from Apple merchandise revenues successful fiscal 2025,” helium added.

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