Qualcomm expects phone sales to dip by 15% in coming quarter

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Possible 5G iPhone launch may be delayed by pandemic

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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.

 

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Reuters reported that the 5G smartphone vendor in question was believed to be Apple.

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

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