Smartphone Chips Sales Slow Down as Demand falls

July 27th, smartphone chip supplier Qualcomm Inc. mentioned the upcoming sales slow down, reflecting the rising inflation and economy uncertainty. Consumer tends to save rather than spending, hence, the demand for smartphone has slowed down.

Qualcomm reported on Wednesday that the latest quarter recorded 36% growth, reaching $10.94 billion, surpassing FactSet estimate figure of $10.86 billion. However, it fell short of other Wall Street analysts forecasted range between $11 billion to $11.8 billion. Despite a 59% growth at its handset chip business from last year, setting Q3 fiscal revenue to $6.15 billion, well below previous quarter high $6.33 billion.

Qualcomm commented, Q3 performance is the reflection of the elevated uncertainty in the global economy and consumer’s act with caution in managing their purchases, such as smartphones, overall, the chip maker would still expect a substantial growth from last year.

CEO of Qualcomm, Cristiano Amon said revenue dropped the most from the low-end smartphone segment, and Qualcomm is expanding the use of its high-end Snapdragon platforms for premium products, like Samsung Galaxy series and iPhones, which has more potentials to grow.