Qualcomm cites slowing demand, pressure from China

Qualcomm reported quarterly revenue of $9.6 billion, including licensing revenues of $4.7 billion resulting from the settlement with Apple and its contract manufacturers, consisting of a payment from Apple and the release of certain of our obligations to pay Apple and its contract manufacturers customer-related liabilities.

The company said it is seeing slower demand for 4G devices as the market prepares for the global transition to 5G. In addition, Qualcomm cited continued weakness in China demand as Huawei gains share inside China and Qualcomm's other Chinese OEMs manage inventory ahead of 5G.

Qualcomm CEO stated:  CEO, Steve Mollenkopf during the call:

“Today, we are the only chipset vendor that has 5G system level solutions spanning both sub6 GHz and millimeter bands.  This is key to global deployments.”On the product side, our 5G design wins have doubled since our last earnings call.  We now have over one hundred fifty 5G designs launched or in-development using our 5G chipsets. In addition to core chipsets, virtually all our 5G design wins are powered by our complete RF Front-End solutions for 5G Sub6 and / or millimeter wave.  We are the only company today delivering an end-to-end comprehensive modem-to-antenna solution. Put simply, our position – at the center of developing this incredible technology – represents a large opportunity for our stockholders."

“By the first calendar quarter of 2020, we anticipate reaching the inflection point as our financial results begin to reflect the benefits of our substantial efforts over the years in to bring 5G to the market worldwide.”