Qualcomm handset chip revenue falls 26 per cent in September quarter
The company reported a decline in smartphone chip sales and adjusted earnings despite raising prices for its products.
Qualcomm's handset chip revenue dropped 26 per cent to $5.14 billion in the September quarter, according to a report by the Times of India. This figure was down from $6.96 billion a year ago and missed the $5.21 billion estimate from StreetAccount.
The company's total adjusted revenue fell 7 per cent to $10.44 billion. Adjusted earnings per share decreased 28 per cent to $2.17, while adjusted pre-tax profit saw a 30 per cent decline.
Qualcomm is increasing prices for its Snapdragon products due to higher costs in memory, chip packaging, wafer fabrication, and other materials. However, the company stated that these price hikes will not fully protect margins until the second half of fiscal 2027, which starts in April.
The company's licensing business, which collects royalties from patent users, also saw revenue fall 7 per cent to $1.3 billion. This occurred despite renewed licensing agreements with Huawei, Apple, and Transsion.
Global smartphone shipments fell 20 per cent year-on-year during the July to September quarter, according to Counterpoint Research. Major Android customers such as OPPO, Vivo, and Xiaomi also saw shipment declines.
For the current quarter, Qualcomm expects adjusted earnings between $2.15 and $2.35 per share. CEO Cristiano Amon noted that the data centre unit is currently limited by supply.