Qualcomm expects phone sales to dip by 15% in coming quarter
30 July 2020 | 0
Qualcomm expects global smartphone sales to fall by 15% over the next three months, due to the ongoing Covid-19 pandemic.
Qualcomm, which sells many of the smartphone processors and radios that go into the world’s smartphones, said that Covid-19 would slow sales for its current fourth fiscal quarter. Qualcomm reported third-quarter fiscal results on Wednesday.
“Our guidance for the fourth quarter of fiscal 2020 includes an impact of greater than ($0.25) to EPS attributable to a planning assumption of an approximate 15% year-over-year reduction in handset shipments due to COVID-19, including a partial impact from the delay of a global 5G flagship phone launch.” Qualcomm said in a statement accompanying its earnings results.
Qualcomm reported net income of $845 million on revenue of $4.893 billion. Those figures dropped precipitously from a year ago, when the company reported $2.15 billion of profits on revenue of $9.635 billion. However, the results from a year ago also included $4.7 billion of revenue from Apple via a settlement agreement.
In July 2020, the company also entered into a settlement agreement with Huawei, including a patent cross licensed. In its fourth fiscal quarter, that agreement will pay Qualcomm $1.8 billion plus whatever royalties come from the settlement, Qualcomm said.
IDG News Service