Qualcomm predicts “ low double-digit drop” in phone sales in 2022

Qualcomm had earlier said it expected a “mid-single-digit percentage drop” in phone sales 

November 03, 2022 03:37 pm | Updated January 28, 2023 01:11 pm IST

A file photo of the Qualcomm sign pictured in front of one of its buildings in San Diego, California

A file photo of the Qualcomm sign pictured in front of one of its buildings in San Diego, California | Photo Credit: Reuters

Qualcomm, on Wednesday, in its fourth quarter fiscal report predicted a “low double-digit percentage” decline in phone sales.

(For insights on emerging themes at the intersection of technology, business and policy, subscribe to our tech newsletter Today’s Cache.)

The company, one of the primary providers of chips and modems for smartphone manufacturers, changed its earlier prediction of a mid-single-digit percentage decline in smartphone sales citing uncertainty caused by macroeconomic environments,

The predictions account for sales of 3G, 4G, and 5G handsets.

Qualcomm, in its report, shared that the decline in demand and easing of supply constraints across the semiconductor industry has resulted in elevated channel inventory for some of their largest customers. This in turn has led them to draw down their inventory impacting Qualcomm’s earlier predictions.

Two of Qualcomm’s “largest customers”, Apple and Samsung have reportedly struggled with slow sales. While Apple recently cut production of its iPhone 14 Plus model, Samsung reportedly has nearly 50 million units in unsold stock.

Qualcomm’s updated predictions indicate sluggish phone sales could continue through the holiday season. The company also shared that there is “roughly 8-10 weeks elevated inventory”, and it expects the problem to take a couple of quarters to work itself through.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.