Qualcomm Tips 30% Phone Demand Drop, 5G Stable
Component manufacturer, Qualcomm, has slashed its initial projection for the coming quarter, expecting smartphone shipments to drop as much as 30% in the coming months.
The update adds to its previously forecast 21% drop for the last quarter.
Despite an expected drop in demand for new smartphones, Qualcomm has reconfirmed its original forecast for the number of 5G devices shipped this year.
Qualcomm is tipping around 175 million to 225 million 5G phones to be shipped in 2020.
The news as the company continues to edge market leadership in the 5G phone modem market, after Intel pulled back, and Apple quashing its long-running dispute with the company to utilise its components in 5G iPhones.
Disclosed in a trading update, the Qualcomm has post Q2 revenues of US$5.2 billion, beating expectations of US$5.02 billion.
Second quarter net income slipped a notable 29% YoY to US$468 million.
Government changes prompt by coronavirus, coupled with a decrease in demand for phones amid economic hardship and supply chain impairments are also set to potentially hit sales in coming months.
Qualcomm has also flagged its ongoing royalty licensing dispute with Huawei as a potential hurdle – months after trucing with Apple – plus dependence on a “small number” of customers specifically in the premium device market.