On Wednesday Qualcomm, after losing its business of chip sales to Apple, announced a lowered than expectation forecast for its sales revenue for this quarter of holiday shopping. The chipmaker headquartered at San Diego has also announced higher than expected forecast for the profit of first quarter of fiscal year 2019 which was the result of tax gain of 45 cent per share for a single time.
Qualcomm despite being the biggest name in the world for its chip making business for smartphones, after losing its biggest customer Apple, has been facing deceleration in growth.
In September Apple opted to purchase chips from Intel Corp for modems of its new X series after excluding and also suing Qualcomm upon its patent licensing issues. Qualcomm’s preventive statement to its shareholders about Apple’s intension in September had affected its share quicker than expected by analysts.
Qualcomm now forecasted earnings per share of $1.05 to $1.15 after adjustment for its first fiscal quarter ending in December, whereas revenue generation ranging between $4.5 billion to $5.3 billion. Analysts are forecasting per share earnings of 95 cents with revenue of $5.57 billion for Qualcomm.
By signing business contracts with clients who can successfully pay the patent licensing at lower rate, Qualcomm is now trying to balance the impacts of Apple’s quit and litigation issues. Qualcomm also remain successful to accomplish more trade with smartphone giants like Samsung. For low cost market of India, Qualcomm is partnering with Chinese phone maker includes Vivo, Oppo, Xiaomi and OnePlus.
Qualcomm is expecting more enhanced sales to be arising from use of its Snapdragon chip series of 700 and 800 in progressively rising number of high end phones by these Chinese companies.
With all these issues Qualcomm in its fiscal fourth quarter ending September, earned 90 cents per share beating analyst expectation of 83 cents per share. Revenue of $5.80 billion also remained higher than expected revenue of $5.52 billion.