Qualcomm CEO Cristiano Amon said at a quarterly reporting event that the company managed to grow revenue by 37% to $10.93 billion even in tough economic conditions, although analysts on average expected that indicator currently will reach the level of $10.88 billion in the quarter, revenue will be between $11 billion and $11.8 billion, such forecast was below analysts’ expectations.
In the most recent quarter, the third quarter in the mobile processor developer’s financial calendar, Qualcomm managed to grow smartphone sales by 59% to $6.15 billion, despite the market already showing signs of slowing demand under pressure from inflation and macroeconomic uncertainty. In the current quarter, the company expects operating expenses to increase sequentially by 6% to 8%. According to Qualcomm representatives, the weakness in demand this quarter will be strongest in the entry-level and mid-price segment, with expensive smartphones hardly being affected by the trend. In fact, the company can count on the possibility of growing sales in the smartphone segment by almost 50% for the full year, as sales declines in cheaper chips are offset by sales increases in more expensive areas.
Qualcomm management forecasts that smartphone sales will fall by 5-6% this year. In the high-end smartphone segment, sales of 5G-enabled models will be lower than previously expected. On the other hand, Qualcomm’s IoT ($1.83 billion, +31%) and automotive ($350 million) sales hit record highs last quarter, with the latter up 38%.
Along the way, Qualcomm announced that it managed to extend an agreement with Samsung Electronics, which will use the American developer’s mobile processors in their smartphones and other devices until the end of 2030. Royalties continue to fuel Qualcomm’s solid earnings, with core revenue up 2% last quarter to $1.52 billion, and Qualcomm’s controversial report caused its share price to fall 4% after the release of quarterly statistics.