According to Qualcomm, smartphone sales will fall by 30% in the coming months due to the impact of the global Covid-19 pandemic.
After seeing a 21% drop in smartphone demand in the last quarter, Qualcomm said there are no signs of optimism in the next few months. Its revenue in the second quarter of 2020 reached US $ 5.2 billion, a slight increase compared to the expected figure of US $ 5.02 billion, but net profit decreased by 29% over the same period last year, to US $ 468 million.
Qualcomm said there are three factors related to the SARS-CoV-2 virus that affect smartphone sales in the coming months, including: the impact of Covid-19 and the country’s disease prevention policy on trust. of users, businesses; customer needs for smartphones using Qualcomm chipsets; status of wireless supply chain, outsourcing and distribution worldwide.
In addition, Qualcomm thinks there are other factors, unrelated to the corona virus but affecting the company’s revenue in the quarter, including licensing disputes with Huawei, network deployment and segment development. high class.
While the demand for new devices may decline, Qualcomm maintains estimates of 5G device shipments by 2020 as previously reported. They expect 225 million 5G smartphones to launch this year.
The nascent 5G market is an important part of Qualcomm’s business. Their modem plays an exclusive, irreplaceable role, with no real competitors in the market.
Even Apple was forced to downgrade in court disputes in exchange for a contract to supply 5G modems from Qualcomm.