(Reuters) – Qualcomm has forecasted fourth-quarter revenue below market expectations on Wednesday as consumer spending on gadgets like smartphones remains stubbornly weak amid slowing global economic growth.
Demand for consumer electronics has also been hampered by a slower-than-expected economic recovery in China. Smartphone shipments in the world’s second largest economy were down 5% in the June quarter, according to Canalys data.
Qualcomm stated that its forecast also considers the impact of macroeconomic headwinds, weaker global handset units, and channel inventory drawdown.
The company expects fourth-quarter revenue to be between $8.1 billion and $8.9 billion. Analysts polled by Refinitiv had anticipated revenue of $8.70 billion.
Following the announcement, its shares experienced a nearly 2% decline in choppy trading after the bell.
In May, at a conference, Qualcomm CEO Cristiano Amon had mentioned that he has not observed signs of healthy consumption in China yet and that the recovery of the smartphone industry would take “a number of quarters.”
Qualcomm’s rival, MediaTek…
2023-08-02 15:02:38
Original from finance.yahoo.com
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