Qualcomm forecasts upbeat third-quarter revenue as diversification bet pays off
- Qualcomm’s adjusted revenue for the quarter ended March 27 was US$11.16 billion, above estimates of US$10.6 billion
- Revenue from chips catering to auto and internet applications rose 41 per cent and 61 per cent, respectively, during the second quarter

Qualcomm Inc forecast third-quarter revenue above analyst expectations after beating second quarter revenue and profit estimates on Wednesday, largely due to its move to focus on a growing non-handset business to cushion a likely hit from slowing smartphone demand.
The robust earnings outlook and record quarterly revenue for the last quarter immediately pushed Qualcomm shares up about 5 per cent in after-hours trading.
Lockdowns in China, war in Ukraine and rising inflation have taken a toll on consumers, preventing them from spending on electronic gadgets like phones. However, Qualcomm has not been affected so far.
“The market in China is changing a bit. I think we’re kind of less impacted by it because we’re really focused on the premium and high-tier” smartphone market, Chief Executive Officer Cristiano Amon told Reuters.
Runar Bjørhovde, an analyst at research firm Canalys, said smartphone makers will want to focus on selling more profitable high-end phones as the supply chain constrains production, while consumers will want to buy cheap phones as inflation and uncertainty hold them back from spending.
He said the “sweet spot” will be in the mid-range devices (US$300 to US$800), where Qualcomm has a strong hold and excellent partnerships with the vendors who dominate this market segment.
Qualcomm’s strong results coupled with Meta Platforms’ surprising profit beat pushed Apple Inc’s shares up about 1 per cent in after-hours trading, providing glimmers of hope for a solid showing when the iPhone maker reveals results on Thursday.
“These [Qualcomm] results lay the foundation to make a strong case that the smartphone business is still strong after the traditionally big holiday quarter,” said Dan Morgan, senior portfolio manager at Synovus Trust Company, adding that Qualcomm derives 25 per cent of its sales from making modem solutions for Apple.