Qualcomm is predicting a ‘double-digit’ drop in phone sales

According to the company's latest earnings release, the uncertain economic environment will cause phone sales to be down more than expected.

In light of the uncertainty caused by the macroeconomic environment, we are revising our guidance for calendar year 2022. According to the company, rapid deterioration in demand andeasing of supply constraints have led to increased inventory and that large customers are having to draw down their inventory.

Two of the largest customers are likely to be Apple andSamsung, both of which use the same chip. In June, Korean industry site TheElec said that there were 50 million phones in stock, while in September, it was reported that Apple wouldn't increase production of its new phone. Apple's revenue for the previous quarter was below estimates, a sign of weak demand for the new lineup of phones.

The company seems to think that sluggish phone sales could continue through the holiday season. The company expects the issue to take a couple of quarters to work itself out. As of this writing, the stock of the company is down more than 6 percent.

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