Qualcomm Inc's forecast for holiday-quarter revenue fell about $2 billion short of Street estimates, as the chipmaker struggles with a slump in sales to smartphone customers, sending its shares down 7% in after-hours trading.
Qualcomm said it was now expecting to have the vast majority of 5G modem share for the 2023 iPhone launch, up from a previous assumption of 20%. It also said on a post-earnings call that it was assuming minimal contribution from Apple in fiscal 2025.
"We believe Apple will drive some growth in the December quarter ... but the Android market is extremely weak and many new premium-tier foldable models that were launched a few months ago did not sell well at all," said Kinngai Chan, analyst at Summit Insights Group.in the higher-end Android market, said Runar Bjørhovde, research analyst at Canalys.
Qualcomm forecast current-quarter revenue between $9.2 billion and $10 billion, compared with analysts' estimates of $12.02 billion, according to Refinitiv. It expects adjusted earnings per share of between $2.25 and $2.45, versus expectations of $3.42. To cope with the tough macroeconomic environment, Qualcomm Chief Executive Cristiano Amon told analysts the company had implemented a hiring freeze and would make further cuts to operating expenses as needed.
Reporting by Chavi Mehta in Bengaluru and Jane Lanhee Lee in Oakland; Editing by Mark Porter and Anil D'Silva
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