Qualcomm shares fell more than 9% in early trading after smartphone chip sales missed Wall Street estimates. Its handset revenue fell 26% to $5.14 billion, while chip segment sales declined 8% to $9.02 billion.
Qualcomm shares dropped more than 9% in early trading after smartphone chip sales missed Wall Street estimates, raising concerns that weakness in its core handset business could offset growth in areas such as data-center chips. If losses hold, the company is on track to shed more than $17 billion in market value.
Revenue from Qualcomm's handset division, its largest business, fell 26% to $5.14 billion, pulling chip segment sales down 8% to $9.02 billion. CEO Cristiano Amon said the company had prepared early for the memory shortage; he also cited sequential improvement in Android demand and progress expanding beyond handsets. Brokerages said improved visibility in data-center and automotive chips had yet to translate into stronger near-term earnings, while at least 10 lowered their price targets after the results.
