Qualcomm’s latest quarterly results show that the smartphone market has not yet fully recovered, and that the San Diego giant has a deep dependency the same in terms of revenue despite its most recent efforts to diversify and break into other markets.
Qualcomm has closed the third quarter of the year with a 23% drop in revenue on a year-over-year basis. Its income reached 8.4500 million dollars, a figure that was below the predictions of Wall Street, where they expected it to reach 8.510 million dollars.
Earnings per share totaled $1.87 billion, a figure that also represents a considerable drop if we compare it with the 2,960 million dollars of the same period of the previous year, although in this case it did manage to exceed the expectations of the analysts, who were located in the range of 1,810 million dollars.
As expected, Qualcomm’s mobile chip business unit accounted for a total of 5.255 million dollars in revenue, that is to say, more than half of the total, something that should not surprise us since, as I said at the beginning of the article, the San Diego company continues to have a huge dependence on the mobile sector.
Revenue earned from the chip business unit fell 25% compared to the same period of the previous yearwhile the IoT business unit fell 24% to $1.48 billion, and its automotive solutions-focused business unit also fell 13% to $434 million in revenue.
During the last results conference with investors, Qualcomm CEO Cristiano Amon said that Qualcomm is taking a “conservative” view of the market, and that it expects to invest $285 million to face restructuring measures. He also does not rule out taking new measures to reduce costs, and commented that he hopes that little by little the level of stock of chips will stop being a problem and that it will be reduced to a single-digit percentage.
The firm has problems with excess stock, but they are uneven and mainly affect its IoT solutions. On the other hand, the recovery of the smartphone market in China is slower than expected, and this is obviously taking its toll. However, the company expects things to improve this Christmas (end of the year).
