Qualcomm Gives Lackluster Forecast, Renewing Slowdown Fears

, the biggest maker of chips that run smartphones, gave a lackluster forecast for the current period, fueling concerns that weaker consumer spending will hurt demand for mobile devices

In the fourth quarter, revenue is expected to be between $11 billion and $11.8 billion. That is lower than the average analyst estimate. Earnings will be $3 to $3.30 a share, compared to the average projection of $3.26 a share.

After the announcement, the stock fell about 3.6% in extended trading.

Consumer spending power has been affected by rising inflation and sales of phones have been hurt. The company is pushing into different areas but still relies on phones to grow.

Tech peers acknowledged a "challenging" economy while Amon pointed to record revenue from the internet of things chips.

Many of the world's phones are powered by the main product of the company. The modem chips that connect the iPhone to high-speed data networks are sold by it. The fundamental technology that underpins modern phone networks is licensed by the company.

The market research firm predicts that sales of the device will rise just 3.0% this year.

The chip industry forecast was slashed byGartner.

In the fiscal third quarter, sales of the company's phone-related chips increased to $6.1 billion, up from an estimate of $6 billion. The revenue from the internet of things was almost $2 billion. That is lower than an average projection of almost $2 billion. The sales of chips used in vehicles increased but fell short of expectations.

The revenue was in line with estimates. The three-month period that ended in June had a profit of $2.96 a share, compared with Wall Street's average estimate of $2.86 a share.

A large part of the company's profit is from licensing. The company has patents that cover some of the basics of mobile communications, so it pays to use its technology even if you don't buy it.

The world's largest phone maker, SAMSUNG ELECTRONICS CO., has signed an extension of its technology licensing agreement with the world's largest chipmaker, QUALCOMM. The two companies said in a statement that they will license the technology from one another.