Qualcomm saw a 21% drop in handset shipments in Q1

Citing negative impacts by the global COVID-19 pandemic, Qualcomm reported quarterly revenue of $5,216 billion, up 5% from the $4,982 billion reported a year ago.

Qualcomm saw a reduction in demand of 3G/4G/5G handsets of approximately 21%.

GAAP net income was $468 million, down 29% from $663 million a year earlier. GAAP results were also negatively impacted by $265 million, or ($0.21) per share, in non-marketable investment impairments, resulting in part from the impacts of COVID-19.

“We executed extremely well in the second fiscal quarter, with strong Non-GAAP results in line with our guidance, demonstrating the strength of our business model and the resilience of our team to respond quickly to the unique challenges presented by the global pandemic,” said Steve Mollenkopf, CEO of Qualcomm.

For Q2, Qualcomm is expecting a 30% drop in demand of 3G/4G/5G handsets due to COVID-19.