Shulou(Shulou.com)11/24 Report--

CTOnews.com November 3 news, Qualcomm is now releasing the latest results. Qualcomm's revenue forecast for the holiday quarter, the first quarter of fiscal 2023, was about $2 billion lower than Wall Street expected as it struggled to cope with falling sales of smartphone customers, causing its shares to fall 7 per cent in after-hours trading.

In addition, Qualcomm said it imposed a hiring freeze at the beginning of the quarter.

"given the uncertainty caused by the macroeconomic environment, we are updating our performance guidance for 3G / 4G / 5G handset sales in the 2022 calendar year, from a year-on-year median year-on-year decline to a low double-digit year-on-year decline." Qualcomm said in the report: "the rapid deterioration of demand across the semiconductor industry and the easing of supply constraints have led to an increase in channel inventory."

In a conference call on Wednesday, Qualcomm CEO Ammon told the media that the semiconductor industry was facing a macroeconomic headwind that "we are not immune". He revealed that the company had implemented a recruitment freeze and was prepared to further cut operating expenses as needed.

"We are still in a strong position to deal with recent headwinds," Mr Amon stressed in a conference call, noting that the company was facing a "temporary cyclical inventory decline".

Chip shortages and the easing of supply chain bottlenecks in recent quarters have led to excess inventory among smartphone makers. Qualcomm estimates that an "inventory rise" of about 8-10 weeks could take several quarters to resolve.

Akash Palkhiwala, Qualcomm's chief financial officer, said inventories were likely to bottom out during the holiday season and manufacturers would use up existing chips.

CTOnews.com has reported that revenue from Qualcomm's mobile phone business grew 40% in the quarter ended September 25, but revenue from chips that support WiFi and Bluetooth connections fell 1/5. Mobile phones account for more than half of Qualcomm's total sales.

Qualcomm has won more business from Apple, and the chipmaker has been trying to reduce its dependence on Apple. Qualcomm said it will begin to benefit from the increase in the share of chips used by Samsung in the March quarter.

Qualcomm said it expects the share of 5G modems to rise to the vast majority when iPhone is released in 2023, up from 20 per cent before. The company also said on a conference call after the earnings release that it assumed that Apple had made the least contribution in fiscal year 2025.

"We believe that Apple will achieve some growth in the fourth quarter of last year... but the Android market is extremely weak, and many of the high-end foldable phones launched a few months ago are not selling well," said Jin Gai Chen, an analyst at Summit Insights Group.

Lunar Bjorrovid, a research analyst at Canalys, said the company also faces fierce competition from MediaTek, a Taiwanese chipmaker, in the high-end Android market.

Qualcomm expects revenue of between $9.2 billion and $10 billion for the current quarter, while analysts expect it to be $12.02 billion, according to Refinitiv. The company expects adjusted earnings per share of between $2.25 and $2.45, with a forecast of $3.42.

Qualcomm's fourth-quarter revenue was $11.396 billion, and its net profit increased by 3% year-on-year.

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