Qualcomm has released its Q1 financial earnings report that shows the company’s revenue is affected by lower global smartphone sales. The outlook for the current quarter and this year also doesn’t seem promising.
A Plunge in smartphone sales has impacted many manufacturers and their partners. China, one of the world’s biggest markets, is struggling with the lowest smartphone sales in a decade (via Reuters). The situation in other markets isn’t also better. A decline in the market has a big impact on chip manufacturers, and Qualcomm has now ended up in a dire situation.
According to the earnings report, Qualcomm made $9.46 billion over the last quarter, which ended on December 31, 2022. This amount shows a 12% decline compared to the same period in 2021.
Qualcomm’s revenues are falling as smartphone sales decline
A situation that Qualcomm ended up with has been below analyst expectations and has impacted all company’s divisions. The QCT business that oversees the sale of smartphones, automotive, and IoT is dealing with an 11% decline in revenue. Qualcomm’s overall revenue from smartphones also declined by 18%.
Qualcomm also doesn’t expect things to get better in Q2 2023. The expected revenue for this quarter is between $8.7 billion and $9.5 billion, which shows a massive drop compared to the $11.16 billion generated in the same period of 2022.
Qualcomm CEO Cristiano Amon called the situation a “challenging environment” but asserted that they could “deliver results consistent with guidance, including year-over-year growth in QCT Automotive and IoT.” Additionally, he believes there is an intact potential for the long-term trends that drive the company’s technologies and solutions forward. “We are confident in our ability to navigate the near term and remain focused on executing our diversification strategy,” Amon added.
The Qualcomm CEO also expects the fall in smartphone sales to continue until at least the first half of 2023. These disappointing earnings reports coincided with the launch of the Samsung Galaxy S23 series, which uses Qualcomm Snapdragon 8 Gen 2 in global versions. The success of the S23 series can certainly shake up the numbers in future earnings reports.
2023-02-04 15:07:03