Qualcomm shares sink 7% premarket after trade-tainted earnings disappoint
Qualcomm QCOM, -2.21% gave a disappointing outlook for its fourth quarter Wednesday, with much of the disappointment coming from two big issues related to China: trade and the transition to 5G in cell phones.
Executives added that in China, device shipments from handset makers to carriers and retailers was down 5%, but said the device sell-through from carriers and retailers to consumers was more pronounced, down approximately 20% year-over-year, “reflecting in part a pause by consumers ahead of 5G and an uncertain macro environment.”
Qualcomm said its fourth-quarter forecast did not include any revenue from Huawei. In the third quarter, Qualcomm recognized a $150 million interim payment from Huawei for licensing its technology. Qualcomm noted that Huawei’s 5G modem is at least 50% bigger than its first-generation 5G chipset.
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