What you should know
- Qualcomm introduced its fiscal yr Q3 2023 monetary earnings on Wednesday.
- The corporate noticed income fall in most departments in comparison with the identical quarter final yr.
- Handset chip gross sales fell 25%, doubtless a results of the falling smartphone shipments.
The smartphone business is at the moment in decline proper now, and firms like Samsung and Qualcomm are feeling the monetary results of it. Qualcomm introduced its fiscal yr Q3 2023 monetary earnings on Thursday, and whereas it carried out higher than expectations, the corporate noticed revenues falling in almost each division.
Qualcomm reported $8.45 billion, which represents a 23% drop in comparison with the $10.9 billion in income reported throughout the identical interval in 2022. Among the many greatest offenders throughout the quarter have been handset chip gross sales, which fell 25% year-over-year to $5.25 billion.
The one shiny spot was the Automotive enterprise, which noticed a 13% development in income due to Qualcomm’s push in that phase.
The slowdown in smartphone shipments has been attributed to the truth that stock “stays elevated attributable to weaker demand pushed by the broader macroeconomic circumstances,” mentioned Qualcomm CFO Akash Palkhiwala throughout the earnings name. “Therefore, it stays tough to foretell the timing of a sustained restoration, and prospects stay cautious with purchases.”
The decline in Qualcomm’s headset gross sales correlates with the decline in total smartphone shipments for the quarter, in keeping with figures from Counterpoint Analysis. The agency famous a 24% drop in smartphone shipments within the second quarter, with nearly each main OEM besides Google seeing a dip in year-over-year shipments.
Samsung, which makes use of the Snapdragon 8 Gen 2 globally within the Galaxy S23 sequence, additionally suffered this quarter attributable to put on chip demand, which resulted in a 95% year-over-year drop in working income.
Qualcomm’s CEO, Cristiano Amon, stored an upbeat perspective, highlighting the large alternative with generative AI.
“As AI use circumstances proliferate to the sting, on-device AI has the potential to drive an inflection level throughout all our merchandise,” Amon mentioned in a press release. “Qualcomm stays greatest positioned to steer this transition given the unrivaled accelerated computing efficiency with the facility effectivity of our platforms.”
The corporate’s subsequent flagship chipset is predicted to be introduced on the firm’s upcoming Snapdragon Summit in October.
