Qualcomm forecast beats estimates as diversification efforts pay off
Information about Qualcomm forecast beats estimates as diversification efforts pay off
Kevin David Scam or Legit
By Stephen Nellis
(Reuters) -Qualcomm Inc on Wednesday forecast better-than-expected profits and revenue for its current quarter on soaring demand for chips used in phones, cars and other internet-connected devices.
The San Diego company, still the biggest supplier of chips for mobile phones, has worked to diversify its chip portfolio. Its optimistic forecast came even as smartphone makers such as Apple Inc have been struggling with supply chain issues and reporting uneven results.
Those global snarls have benefited Qualcomm because they have forced profit-hungry phone makers to focus their limited supplies on their most lucrative premium handsets, the market segment where Qualcomm is strongest. Qualcomm has also benefited from Huawei Technologies Co Ltd’s exit from the smart phone market. The Chinese firm’s Android phones had used proprietary chips, but many of the handsets replacing them use Qualcomm’s chips.