The chip designer still exceeded expectations for third-quarter adjusted revenue.
Qualcomm’s forecast comes at a time when major chipmakers including Micron Technology and Texas Instruments have warned of a cooling in demand for consumer electronics.
Smartphone sales are under pressure due to runaway inflation, growing risks of recession and repeated COVID-19 lockdowns in China that are forcing consumers to restrict their spending. Global smartphone shipments will drop 3.5% this year, according to IDC data.
The Ukraine crisis and lockdowns in China have also exacerbated supply chain problems and hurt demand, forcing many phone makers to reduce chip orders.
Qualcomm is seeking to diversify into sectors such as automotive, but its mobile phone chip business still accounts for more than half of its total sales.
The company expects current quarter revenue to be between $11 billion and $11.8 billion, compared to analysts’ estimate of $11.87 billion, according to Refinitiv data.
It forecasts adjusted earnings per share of between $3 and $3.30, against estimates of $3.23.
Qualcomm said the midpoint of its fourth-quarter guidance included an estimated impact of about a 20-cent reduction in earnings per share due to macroeconomic headwinds and a lower global handsets forecast.
Adjusted revenue for the quarter ended June 26, as analysts expected strong demand from Apple, came in at $10.93 billion, versus estimates of $10.88 billion. of dollars.
Separately, Qualcomm said it has also extended its patent license agreement with Samsung Electronics until the end of 2030. It has also agreed to extend the use of Snapdragon platforms for future Samsung high-end products. Galaxy, including Samsung Galaxy phones.