What you need to know
- Qualcomm announced its first quarter results on February 2nd.
- The company has witnessed revenue declines across its various businesses and divisions.
- The company expects revenue to continue to decline this quarter despite sales of the new Galaxy S23.
Qualcomm’s latest earnings report highlights a difficult year for smartphone OEMs amid sluggish demand. The company reported he made $9.46 billion in the quarter ending December 31, 2022. This is not only down 12% from the same period in the second half of 2021, but also below analyst expectations.
The company’s QCT business accounts for the majority of revenue representing mobile phone, automotive and IoT sales. Across the division, revenue was down 11%. This was attributed to an 18% decline in mobile phone revenue. Coincidentally, this aligns with IDC’s estimate that smartphone shipments fell by 18% in his fourth quarter of 2022.
Qualcomm CEO Cristiano Amon said in a statement, “In a challenging environment, we achieved results consistent with our guidance, including year-over-year growth in QCT Automotive and IoT.” The long-term trends driving demand for our enabling, differentiated technologies and solutions remain intact.We are confident in our ability to navigate the near term and remain focused on executing our diversification strategy. increase.”
Unfortunately, Qualcomm’s guidance for the current quarter (Q2FY2023) is also not optimistic, with revenue estimated between $8.7 billion and $9.5 billion, and smartphone sales trending downward. indicates that it is in For comparison, Qualcomm raised $11.16 billion in the same period last year.
Earnings for @Apple and @Qualcomm clearly show that last year’s slowdown in smartphones is real and will likely continue into at least the first half of this year. The difference is that Qualcomm’s business is much more diversified $AAPL $QCOMFebruary 2, 2023
Interestingly, this guidance came after Samsung launched its new Galaxy S23 series with Snapdragon 8 Gen 2. globallyThis is a big deal for the S series flagships and should be a win for both Qualcomm and Samsung.
As the company is implementing further spending cuts, Amon said on the conference call that the mobile phone industry “continues to experience lower demand and expects channel inventory levels to continue to rise at least through the first half of 2023.” He goes on to say that mid- and lower-tier smartphones are more affected by this drop in demand. Akash Palkhiwala, his CFO at Qualcomm, said this could be in the third quarter of 2023, but inventories could normalize later this year.
