Qualcomm is predicting a “double-digit” drop in telephone gross sales

Qualcomm, one of many main suppliers of chips and modems in telephones, is predicting that telephone gross sales shall be down way more than anticipated in 2022 because of the unsure financial setting, based on the corporate’s newest earnings launch revealed Wednesday.

“Given the uncertainty caused by the macroeconomic environment, we are updating our guidance for calendar year 2022 3G/4G/5G handset volumes from a year-over-year mid-single-digit percentage decline, to a low double-digit percentage decline,” Qualcomm wrote. The firm additionally says that “rapid deterioration in demand” and “easing of supply constraints” within the semiconductor business have led to elevated stock and that Qualcomm’s largest clients are having to attract down their stock.

The firm’s up to date steerage appears to point that sluggish telephone gross sales might proceed by way of the essential vacation gross sales season. In a slide deck, Qualcomm mentioned there’s “roughly 8-10 weeks of elevated inventory,” and the corporate expects that subject “may take a couple of quarters to work itself through.” Qualcomm’s inventory is down greater than 6 % in after-hours buying and selling as of this writing.