Qualcomm, the leading mobile-phone chip maker, has reported a significant decline in profit and revenue for the third quarter of this year. The company’s net income dropped by 52%, falling to $1.8 billion, or $1.60 a share, compared to $3.73 billion, or $3.29 a share, during the same period last year. However, adjusted earnings were slightly higher than analysts’ estimates at $1.87 a share.
The decline in revenue was also notable, with a 23% decrease from $10.94 billion to $8.45 billion. Despite this decline, analysts predicted that revenue would slightly exceed this forecasted figure at $8.51 billion.
The turbulent market for smartphones is partially to blame for Qualcomm’s declining performance. While the company has seen growth in newer markets, such as the automotive industry, it has struggled with decreasing handset sales. As a result, Qualcomm has been working to expand its product offerings to adapt to market changes.
According to Chief Executive Cristiano Amon, the rise of on-device artificial intelligence (AI) has the potential to drive growth for Qualcomm across all its products. As AI use cases become more widespread, the company believes that on-device AI will spark a significant turning point.
This challenging period for Qualcomm highlights the ever-evolving landscape of the smartphone industry. With fluctuating consumer demand and emerging technologies, companies like Qualcomm must continue to innovate and adapt to stay competitive in the market.
- Wall Street Journal
