Credit: Ryan McLeod / Android Authority
- Qualcomm’s chip sales are being affected by the down smartphone market.
- The company’s chip sales have dropped by 25% year over year.
- Qualcomm is preparing for “workforce reductions.”
It has not been a great year for smartphones. Demand has been down across the board for almost every brand, except for Google. As a direct result, chip makers are also experiencing down sales during this turbulent time. Qualcomm, the maker of Snapdragon SoCs, is having a particularly rough time, according to its most recent earnings report.
On August 2, 2023, Qualcomm published its third-quarter earnings report. The Q3 report shows that handset chip sales have gone down by 25% year over year. The company also recorded a net income loss of 52% year over year. And to make things worse, the guidance for the next quarter came in lower than expected, which resulted in an 8% stock drop after the call, according to Ars Technica.