Qualcomm sales rise 37% despite challenging macroeconomic environment
Summary
The companys handset business grew 59% on an annual basis during the quarter to $6.15 billion, despite signs that smartphone sales might be already slowing down due to macroeconomic conditions such as inflation. But Qualcomms forecast suggested that the companys handset sales growth would slow during its fiscal fourth quarter, reflecting the possibility that a decline in smartphone demand could hit its main business both in terms of revenue and earnings. Qualcomm announced a partnership with Samsung through 2030 that includes patent licensing and supplying Snapdragon processors for handsets. QTL, the other major Qualcomm unit thats comprised of licensing fees related to 5G and other technologies the company makes, reported nearly $1.52 billion in sales, a 2% annual rise. Qualcomms gross margin came up short of expectations during a period where chip costs have been rising due to shortages and issues with Chinese production.