Qualcomm Earnings Outlook Dented by Smartphone Demand Woes

Mobile-phone chip supplier Qualcomm cut its smartphone shipment forecast for this year and issued a muted sales outlook, reflecting slowing consumer appetite for smartphones as soaring inflation and economic uncertainty cause people to curtail discretionary spending.

The San Diego-based company, one of the world’s largest providers of chips for phone handsets, on Wednesday reported a 36% increase in sales to $10.94 billion for its most recent quarter, beating a $10.86 billion estimate from analysts surveyed by FactSet. Its forecast for between $11 billion and $11.8 billion in revenue for the current quarter fell short of Wall Street forecasts, however.