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Qualcomm profit up, but chip shortage looms
5 Feb
Summary
- Qualcomm reported higher first-quarter revenue, exceeding analyst expectations.
- The company anticipates a performance dip this quarter due to memory shortages.
- Handset manufacturers, especially in China, are reducing production plans.
Qualcomm reported robust revenue in its fiscal first quarter, exceeding analyst predictions. The company's performance, however, is projected to be constrained in the upcoming quarter due to an ongoing industry-wide shortage of memory supply. This scarcity is anticipated to affect the availability and pricing of memory for handsets.
Chief Executive Cristiano Amon noted that demand for Qualcomm-powered devices in the first quarter surpassed expectations. Nevertheless, he cautioned that this trend might shift as suppliers redirect capacity towards artificial intelligence data centers. Consequently, handset manufacturers, notably those in China, are adjusting their production schedules to mitigate potential impacts.
Qualcomm's outlook for the second fiscal quarter forecasts revenue between $10.2 billion and $11 billion, falling short of analyst expectations. The company also guided for adjusted earnings per share in the range of $2.45 to $2.65, also below Wall Street's estimates. The memory shortage and subsequent price increases are expected to significantly influence the scale of the overall handset industry throughout the fiscal year.
