Qualcomm Warns Of Decline In Smartphone Demand Due To Ukraine Crisis And China Lockdowns

Chip-making giant Qualcomm has warned against declining smartphone sales, compared to its earlier outlook of flat growth.

Qualcomm forecast its fourth-quarter revenue below Wall Street estimates. Image: Getty

Chip-making giant Qualcomm has warned against declining smartphone sales, compared to its earlier outlook of flat growth, the media has reported. The chipset maker forecast its fourth-quarter revenue below Wall Street estimates while bracing for a difficult economy and a slowdown in demand for smartphones which is likely to hurt Qualcomm's mainstay smartphone chip business.

According to a report by news agency Reuters, the San Diego, California-based company now expects smartphone sales to fall five per cent this year, compared with its prior outlook for flat growth. Market research firm IDC has forecast a 3.5 per cent drop in smartphone shipments too.

It should be noted that more than half of the chip manufacturer's total sales come from the smartphones segment. The company makes modem chipsets that power some models of Samsung's flagship Galaxy S series as well as Apple iPhones.

Among the reasons that are hurting the already affected supply chain issues are the Ukraine crisis and China Covid-19 lockdowns which are forcing consumers to buy less and thus, cut orders for chipsets.

Meanwhile, earlier this month, Qualcomm introduced two more efficient chips built for smartwatches that promise big battery gains. The new wearable chips are Qualcomm Snapdragon W5+ and W5 which are made for premium smartwatches and the latter for smartwatches for children and activity trackers, respectively. Notably, Qualcomm has ditched the Snapdragon Wear branding in our of new names for the chipsets. 

OEMs Oppo and Mobvoi are among the first brands to announce smartwatches based on the new platforms.