Qualcomm Earnings Escape Smartphone Slowdown With Market Share Wins


Qualcomm Inc. dodged the effect of slowing smartphone income from Covid-19 lockdowns in China and ebbing desire in Europe, putting up report quarterly income as it received market share on rivals.

The San Diego-based company, a top supplier of chips for telephones, cars and other gadgets, noted profits of $11.16 billion Wednesday for its fiscal quarter finished in March, producing $2.9 billion in net money. Its income steerage for the recent quarter also came in forward of the $10.03 billion analysts surveyed by FactSet ended up anticipating.

Industry-share gains helped Qualcomm buck worries in China and Europe, Chief Executive Cristiano Amon explained. The company’s chips, for case in point, element in 3-quarters of Samsung Electronics Co.’s newest smartphones, the Galaxy S22, up from 40% of previous-era telephones, he reported.

The bigger-than-anticipated product sales arrived even with an 11% slide in world-wide smartphone shipments in the to start with quarter, in accordance to a Bernstein Exploration estimate.

Qualcomm shares rose 1.2% Wednesday and state-of-the-art far more than 4% in late trading right after submitting its quarterly earnings.

Like a lot of of its peers, Qualcomm has benefited from a surge in desire for smartphones and other electronics desired to aid distant teaching and performing from dwelling. Qualcomm’s income have a lot more than doubled given that ahead of the pandemic.

Whilst Qualcomm is best-recognised for its smartphone chips, it has sought to broaden its achieve below Mr. Amon, who took around as CEO previous year.

The organization also documented that its internet-of-items and automotive corporations grew at a rapid clip in the initially quarter, boosting its outcomes.

Qualcomm’s earnings and upbeat outlook come following Dallas-dependent chip-maker Texas Devices Inc. reported better-than-envisioned success on Tuesday, but forecasted present-day-quarter profits short of Wall Road estimates. Intel Corp., the U.S.’s largest chip-maker by income, is set to report outcomes just after market near on Thursday.

Qualcomm reported earnings from chips for handsets rose 56% to $6.33 billion, and its chips for online-connected smart gadgets went up 61% to $1.72 billion. Automotive product sales rose 41% to $339 million.



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