Published in Mobiles

Smartphone sales disaster

by on03 February 2023


Qualcomm warns 

Sales of smartphones are going to be dire for a couple of years according to chipmaker Qualcomm -- which has made a bob or two on the tech over the years.

Qualcomm thinks the world won’t be buying very many Qualcomm phones in the first half of this year. On today’s first 2023 earnings call, the company says it sees “broadening demand weakness among handsets and IoT products” and expects its customers simply won’t bother shipping as many phones in its second and third fiscal quarters (through June 2023) because they don’t expect people to buy them.

Qualcomm already saw an 18 percent drop in phone sales this past quarter (ending December 25th), with research firm IDC calling it the “largest-ever decline in a single quarter” for phones in general, not just in Qualcomm-powered handsets.

Next quarter, Qualcomm actually doesn’t expect its phone sales to decline that much, but the company thinks they’ll be flat year over year. The company thinks things “might normalise in the second half of the calendar year.”

Qualcomm doesn’t think other phone manufacturers will delay announcing or shipping their new phones, saying the OEMs still appear to be on track. There will simply be a “drawdown of channel inventory,” where companies produce and ship fewer of them so they don’t have to reduce prices and potentially take a loss. Other chipmakers like AMD are doing similar drawdowns since PCs also just had the largest-ever drop in demand. AMD, however, thinks its own PC slump might end after one more rough quarter.

 

Last modified on 03 February 2023
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