Qualcomm expects smartphone shipments to fall 30 percent in the comings months due to the coronavirus pandemic, the company said today, cutting its previous forecasts for the next quarter.
That’s in addition to the 21 percent reduction in need for phones that the business kept in mind in the past quarter, which it reported in an incomes release this afternoon. Qualcomm did still manage to beat its Q2 earnings expectations in spite of that drop in need, with Q2 income of $5.2 billion (compared to the projected $5.
Qualcomm states there are three coronavirus-related factors that might affect sales in the coming months:
- How the COVID-19 virus, and government policies around the world to avoid its spread, will affect business and consumer self-confidence
- Demand for brand-new smartphones sold by clients or licensees that utilize Qualcomm items
- The state of the worldwide wireless supply chain, circulation networks, and labor forces
The company likewise also points out other, non-coronavirus-related factors that might affect its profits in the company quarter, including its licensing conflict with Huawei, network rollouts, and its dependance on “a little number of customers and licensees” and the premium-tier device segment of the marketplace.
Regardless of the expected drop in need for new gadgets, Qualcomm is still adhering to its original estimate for 5G devices delivered in 2020, with the business expecting to see 175 million and 225 million 5G phone deliveries this year. The nascent 5G market is a big part of Qualcomm’s service, with the business’s modems working as a few of the only feasible choices for device makers to support the next-generation network– to the point where Apple was forced to settle its ongoing disputes with the business in order to get access to those modems for its upcoming 5G iPhones