Qualcomm Achieves Strong Performance... Focus on Inflation Rise and Decline in Chinese Mobile Demand

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] American semiconductor company Qualcomm recorded strong performance in mobile semiconductor sales growth for Android from January to March.

According to CNBC and other sources on the 27th (local time), Qualcomm announced its fiscal second-quarter (January to March) results, reporting sales of $11.16 billion (approximately 14.12 trillion KRW), a 41% increase compared to the same period last year. This exceeded the market forecast of $10.6 billion.

Qualcomm currently focuses on mobile application processors (AP) and other key products.

Looking at the details of the performance, mobile division sales reached $6.325 billion, a 56% increase compared to the same period last year. Among the 5G business sectors, RF Front-End (RFFE) sales were $1.16 billion, automotive and Internet of Things (IoT) related sales were $339 million and $1.724 billion respectively, increasing by 28%, 41%, and 61% compared to the first quarter of last year.

Qualcomm's earnings announcement came amid growing market concerns that semiconductor demand is gradually slowing down after COVID-19, and foreign media reported that Qualcomm's strong performance alleviated these concerns. However, market experts predict that factors such as smartphone sales slowdown due to rising inflation and decreased demand for smartphones in China will affect future market outlooks.

Qualcomm also provided a fiscal third-quarter (April to June) revenue forecast of $10.5 billion to $11.3 billion, expecting strong performance exceeding the market estimate of $9.97 billion.