The largest maker of smartphone processors has issued a lacklustre forecast that suggest the sluggish demand for mobile devices is set to continue.

Qualcomm forecast its current quarter revenue will sit between A$12.12 billion and A$13.4 billion, falling far under the average analyst estimate of A$13.92 billion.

For the March quarter, revenue fell 17 per cent to A$14 billion, matching the 17 per cent fall in mobile-related sales.

The company signalled that the total market for phones will shrink by a percentage range in the high single digits this year, and that lowered customer orders would continue for the next two quarters at least.

This sent the company’s shares down by as much as 7.5 per cent, and showed that the glut of smartphone chips is yet to abate.

Smartphone processors make up two-thirds of Qualcomm’s revenue.

Chief Executive Officer Cristiano Amon noted the Chinese market has been slow to rebound.

“Common sense and the overall expectation was that the China market was going to bounce back,” he said on a conference call with analysts.

“We’ve not seen those signs yet.”