Smartphone chip sales drop due to economic conditions

Smartphone chip sales drop due to economic conditions

Smartphones processor sales are down. Major manufacturers Qualcomm and Samsung reported disappointing quarterly results.

Qualcomm warned of a decline in smartphone processors sales during the presentation of its third fiscal quarter. Qualcomm attributes the decline to economic circumstances, including inflation, stagnant production in China and supply chain issues. Smartphone processors are Qualcomm’s most important source of income.

The chip manufacturer forecasts the problems in middle and lower segments will extend to coming quarters. Processors for high-end smartphones, however, remain popular, Qualcomm said.

Despite the setbacks, Qualcomm presented reasonable figures for its third quarter. Revenue increased to $10,9 billion, exceeding analyst expectations by 37 percent.

Samsung echoes decline

Qualcomm’s warning is echoed by Samsung. The South-Korean tech giant indicated that smartphone processor sales are declining in its quarterly report. Like Qualcomm, Samsung mentioned unfavourable economic conditions.

The tech giant generated total revenue of €58 billion euros (converted from South Korean Won) in the second quarter of 2022. Chip production was responsible for €21 billion. Memory chips for servers were particularly profitable.

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