AsianFin -- Qualcomm Inc., the leading global supplier of smartphone processors, saw its shares decline in late trading as investors grew concerned about weakening demand for new mobile devices in the coming year.
In a statement released Wednesday, the company projected revenue for the quarter ending in March to be between $10.3 billion and $11.2 billion. Within this range, Qualcomm’s licensing business is expected to contribute $1.25 billion to $1.45 billion, slightly below the average analyst estimate of $1.4 billion.
The forecast for the technology licensing division, which relies on estimates of smartphone sales, led some analysts to doubt Qualcomm’s optimism about the industry’s growth trajectory.
Chief Financial Officer Akash Palkhiwala noted that the company anticipates the overall smartphone market to remain flat or grow by low single digits in 2025. This projection excludes potential revenue from China’s Huawei Technologies Co., which is currently renegotiating its licensing agreement with Qualcomm, according to company executives.
Explore more exclusive insights at nextfin.ai.