Qualcomm Inc. (QCOM) cut its forecast for smartphone shipments again and gave a lower-than-expected outlook, joining Qualcomm in a sharp shift in consumer demand after a spree fueled by the new crown epidemic. Other chipmakers downgraded their forecasts.
The handset chip designer cut its forecast for a percentage decline in handset sales to a low double-digit percentage from the previous median, in a sign that the handset market's decline is accelerating. Qualcomm said in its quarterly results on Wednesday that it expects sales of up to $10 billion in the current quarter, well below Wall Street estimates of about $12 billion.
The San Diego-based company lowered its forecast for 5G phone sales this year to as many as 650 million units from an earlier forecast of as many as 700 million. Earlier this year, the company forecast shipments of more than 750 million units.
The company also said Wednesday that it will supply the vast majority of Apple Inc.'s (AAPL) new 5G iPhones next year with so-called modem chips that coordinate communications between phones and cell towers. Qualcomm had earlier assumed that it would only supply about 20 percent of these chips, suggesting Apple's efforts to develop its own modem chips and replace Qualcomm were not as quick as expected.
Shares of the company were down about 5% in after-hours trading.
