Qualcomm slashes forecast amid chip glut, weak smartphone market - Axios

Qualcomm, a starring shaper of wireless chips utilized successful compartment phones, cars and different devices, slashed its forecast for the existent 4th amid some weaker request and an excess of inventory already successful customers' hands.

Why it matters: Qualcomm is simply a bellwether for the smartphone manufacture and its challenges item conscionable however rapidly the semiconductor manufacture has shifted from unprecedented proviso shortage into a glut of chips.

• Qualcomm shares dropped much than 5% successful after-hours trading, changing hands precocious astatine $106.65, down $5.85. The banal had already mislaid astir $5 per share, oregon much than 4% successful regular trading connected Wednesday, amid a broader marketplace downturn.

The large picture: Qualcomm said the main origin successful its dimmed outlook is simply a dramatically weaker smartphone market. The company, which had seen smartphone income dipping by a mid-single-digit percent for the calendar year, present expects a driblet successful the debased treble digits.

• "The accelerated deterioration successful request and easing of proviso constraints crossed the semiconductor manufacture person resulted successful elevated transmission inventory," it said successful a statement. As a result, it present expects its net for the existent 4th to beryllium 80 cents per stock little than its anterior expectation.
• Intel, AMD and Microsoft person each warned of a important driblet successful PC demand.

Yes, but: Qualcomm says it is good positioned to thrust retired the challenging situation.

• "While our fiscal outlook is being temporarily impacted by elevated transmission inventory, our diversification strategy and semipermanent opportunities stay unchanged,” CEO Cristiano Amon said successful a statement.