Business · Companies · 4 hrs ago
Qualcomm shares fall as smartphone chip sales drop 26%
Qualcomm’s smartphone chip sales fell 26% in its latest quarter, as memory shortages pushed up costs for phone makers and weakened demand.
The company makes processors and modems used in smartphones, alongside chips for cars, connected devices and data centres.
Its overall quarterly revenue and adjusted profit beat estimates, but its forecast for the current quarter included earnings per share below analysts’ average expectation.
Qualcomm shares fell in extended trading after the results.
Chief executive Cristiano Amon said Android phone sales were beginning to recover, though Qualcomm expects the smartphone market to be flat in 2027.
The company is trying to rely less on phone chips by expanding in areas such as AI data-centre technology.
Qualcomm expects non-phone business to grow and replace Apple sales, which it says are not included in its current-quarter forecast.
Qualcomm shares fell in extended trading after the company issued a weaker-than-expected earnings forecast.
CNBC reported a 7% decline, while the Globe and Mail reported a fall of more than 4%.
Qualcomm’s quarterly adjusted revenue and profit beat estimates, but handset chip revenue fell 26% to $5.14 billion.
Rising memory costs are increasing consumer electronics prices and weighing on smartphone demand.
CEO Cristiano Amon said Qualcomm expects growth in non-handset businesses to help offset declining Apple-related sales.
- Who
- Qualcomm and its investors.
- What
- Qualcomm shares fell after its forecast missed profit expectations and handset chip sales fell.
- When
- Wednesday, November 4, 2026, after Qualcomm reported quarterly results.
- Where
- In extended trading; the company’s results and forecast were reported in the United States.
- Why
- Rising memory costs and sluggish smartphone demand weighed on handset chip sales, while the earnings forecast was below analysts’ expectations.
Investors concerned about Qualcomm's outlook
Qualcomm
Handset business
Investors concerned about Qualcomm's outlook
Investors worried about sluggish smartphone demand, falling handset chip sales and declining Apple-related revenue.
Qualcomm
Qualcomm said Android handset sales were beginning to grow sequentially and it was developing non-handset businesses.
Future growth
Investors concerned about Qualcomm's outlook
Investors were concerned about the forecast and the faster-than-expected decline in iPhone-related sales.
Qualcomm
Qualcomm said non-handset revenue would replace Apple-related sales and forecast growth in data-center revenue.
Qualcomm raised prices as memory costs rose.
An agreement allowed Amazon to buy up to US$60-billion of Qualcomm AI chips and related data-centre products.
Qualcomm reported quarterly results, including a 26% fall in handset chip revenue, and issued its first-quarter fiscal 2027 forecast.
Qualcomm shares fell in extended trading after the forecast.
- Extended-trading fall
- 7% reported by CNBC; more than 4% reported by the Globe and Mail
- Quarterly adjusted revenue
- US$10.44-billion
- Quarterly adjusted profit
- $2.17 per share
- Handset chip revenue
- US$5.14-billion, down 26%
- First-quarter fiscal 2027 revenue forecast
- US$10.4-billion to US$11.2-billion
2 sources
What people are saying
We don't have a demand issue; it's a supply issue
Unlike some other companies, we called this memory thing early, and we said we prepared for it
We expect the non-handset (revenue) to replace Apple entirely, and you’re going to see 60-per-cent year-over-year growth in the non-handset business as you go to fiscal ’27.