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Qualcomm Shares Slide As Smartphone Slump And Rising Costs Hit Outlook
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channelnews
Qualcomm shares fell after the chipmaker issued a weaker-than-expected profit forecast, as soaring component costs, supply shortages and slowing smartphone demand weighed on its largest business.
Revenue is forecast to reach between US$9.7 billion and US$10.5 billion, broadly in line with market expectations.
Qualcomm shares dropped more than 4% in extended trading following the results, although some reports showed steeper declines during the session.
Qualcomm is also preparing double-digit price increases after informing customers it could no longer absorb rising supply chain costs.
Qualcomm’s handset revenue fell 20% to US$5.09 billion during the quarter, although it came in slightly ahead of expectations.