Qualcomm shares slide as quarterly revenue misses Wall Street targets
Qualcomm shares fell after missing revenue expectations for its smartphone chips, driven by slowing market demand and concerns over Apple's supply chain.
Qualcomm faced significant downward pressure in after-hours trading, with shares dropping over 4.5% after the company failed to meet Wall Street's quarterly revenue expectations for its smartphone processor division.
According to media reports, this performance is linked to a global slowdown in smartphone shipments, which fell 20% in the quarter ending in September—the lowest level in 14 years, as reported by Counterpoint Research.
Increased costs for high-bandwidth memory chips used in AI servers have further constrained margins. Consequently, revenue for Qualcomm's mobile unit declined by 26% to $5.14 billion, missing the $5.25 billion target previously forecasted by analysts.
Investors are also expressing concern over Apple's transition to in-house modem chips, following warnings from Qualcomm regarding the acceleration of declining sales to the iPhone manufacturer.