Qualcomm Earnings Report: Smartphone Chip Sales Fall 25%, Automotive Business Rises 13%

Qualcomm released its Q3 2023 earnings report on August 2, 2023. The company’s revenue of $7.17 billion was down 24% from a year earlier, while net income of $1.8 billion was up 2%.

The decline in revenue was driven by a 25% drop in smartphone chip sales. This was due to a number of factors, including the ongoing chip shortage, the slowdown in the smartphone market, and the war in Ukraine.

However, Qualcomm’s automotive business was a bright spot. Revenue from this division rose 13% to $434 million. Qualcomm expects this growth to continue in the coming quarters, as more automakers adopt its chips for autonomous driving and other applications.

Qualcomm also said that it expects handset units to decline in 2023, but sees growth in handsets starting in the holiday season. The company also reiterated its guidance for full-year revenue of $31.5 billion and earnings per share of $6.15.

Qualcomm’s Q3 earnings report was mixed. The company’s revenue and earnings were down year-over-year, but its automotive business is growing. Qualcomm expects handset units to decline in 2023, but sees growth in handsets starting in the holiday season.