Applied Materials said it expects current-quarter adjusted earnings between 62 and 70 cents per share and net sales in a range of $3.33 billion to $3.63 billion.

The cocaine nose jobs of Wall Street had expected the company to earn 76 cents per share on sales of $3.66 billion.

Investors are worried about a slowing smartphone market, especially in China, and its impact on chip demand. The US-China trade dispute and a slowing Chinese economy have hit Apple and Samsung.

Applied Materials Chief Executive Officer Gary Dickerson said:

“In the past quarter, there’s been more negative than positive news with the whole industry facing challenges”, CEO Gary Dickerson said during a post-earnings call.

Display equipment revenue in 2019 will decline by about a third from last year to record levels, Dickerson said.

Sales from its display business — which makes flat panel displays for televisions, PCs and smartphones — rose 14.4 percent to $507 million in the reported quarter.

Applied Materials said sales in its semiconductor business which accounts for most of its revenue fell a fifth to $2.27 billion in the reported quarter.

The company’s net income rose to $771 million in the first quarter ended 27 January from $165 million a year earlier. Net sales fell 10.7 percent to $3.75 billion.