Qualcomm mobile processor sales down 17% and total profits nearly halved

Qualcomm is facing a sharp drop in processor sales in the first quarter of 2023. This has led to another decline in the share price.

Here's What We Know

Qualcomm's mobile smartphone processor revenue fell 17% to $6.11 billion in the first quarter of 2023. According to the manufacturer, demand fell harder than expected. The company had projected revenues of $6.9-7.5 billion.

If we talk in general about the segment of components for smartphones, called QCT, sales also declined by 17% and amounted to $7.94 billion. Qualcomm's total revenue for the reporting period was $9.28 billion, which is $0.18 billion more than predicted.

The U.S. company's net income in the first quarter of 2023 fell by 42% to $1.7 billion. After the publication of the financial report Qualcomm stock continued to fall and declined by another 6.5%.

In the second quarter of 2023, the company expects to generate revenue of $8.1-8.9 billion, including $6.9-7.5 billion from mobile processor sales. This is $0.35-1.15 billion less than analysts had forecast. The manufacturer also said it will take about six months to get rid of stockpiled chips.

Source: CNBC