Qualcomm Forecasts Lower than Expected Earnings for the Ongoing Quarter

Qualcomm Forecasts Lower than Expected Earnings for the Ongoing Quarter

On Wednesday, Qualcomm reported its quarterly earnings. The company said its fiscal second quarter earnings and rest of the year outlook could be lesser than expected. The San Diego, California based company's shares dropped almost two percent during the afterhours trading.

The chipmaker said it expects to ship lesser number of chips for smartphones which is one of its largest businesses. Rumors say that Apple is planning to shift to Intel for wireless modem chips in its upgraded versions of iPhone models this year, but nothing has been confirmed so far officially. The likely shift from Qualcomm chips makes it difficult for the executives of Qualcomm as well as the analysts who forecast the results of the company.

The American multinational semiconductor company's shares slipped three percent to $50.50 Wednesday as markets closed. Earlier in the day, the shares vacillated between some gains and losses.

According to Qualcomm, the chipmaker expects a drop of thirteen to twenty two percent to 175-195 million for the ongoing quarter.

The slow growth in smartphone sales along with a large number of competitors is increasing pressure on Qualcomm. The company expects shipments for its 3G and 4G device to climb eight 8 in this quarter but that's lower compared to an earlier estimate of growth approximately at ten percent.