As only Apple’s iPhone last quarter showed growth among major smartphone makers, citing, among other things, increasingly higher rates of Android switchers, Qualcomm on Wednesday said it sees the smartphone market slump worsening.
Asa Fitch for The Wall Street Journal:
The designer of mobile-phone chips cut its forecast to a low-double-digit percentage decline from an earlier forecast of a mid-single-digit fall, showing the downward trend in the handset market is accelerating. Qualcomm, in reporting quarterly results on Wednesday, said it projected up to $10 billion of sales for the current quarter, well short of Wall Street estimates of around $12 billion.
The San Diego-based company reduced its projection for 5G handset sales this year to as many as 650 million from an earlier forecast of up to 700 million. Earlier in the year it forecast shipments of more than 750 million units.
The company also said Wednesday that it would supply the vast majority of Apple Inc.’s new 5G iPhones next year with so-called modem chips that coordinate communications between phones and cell towers. Qualcomm had earlier assumed it would only supply about 20% of those chips, suggesting Apple’s efforts to develop its own modem chips and replace Qualcomm’s haven’t moved as quickly as expected.
MacDailyNews Take: Beyond modems, Qualcomm makes processors for a slew of struggling iPhone knockoff peddlers from Asus to Samsung to Xiaomi.
See also:
• Apple primed for a growth supercycle as switchers to iPhone, Mac, and Apple Watch increase – October 31, 2022
• Apple iPhone posts remarkable 36% growth in China in Q3 – October 27, 2022
• Apple iPhone sales grow while global smartphone market falls 9% in Q3 as consumers trim spending – October 19, 2022
• High rates of Android to iPhone switchers is a catalyst for Apple stock – August 3, 2022
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
Shop The Apple Store at Amazon.
