Qualcomm sees 30% drop in the global handset market in June quarter.
Global chipmaker Qualcomm has estimated there was a 21 per cent decline in handset sales in its fiscal second quarter (January-March period) this year, mainly from the slowdown in China. The leading 5G chip-maker now expects a bigger 30 per cent decline in handsets in the April-June quarter as most of the world outside of China deals with COVID-19.
For the full year, the company forecasts volumes to be down 10 per cent (year-over-year). "In the June quarter, we estimate the overall handset market to be down approximately 30 per cent, driven by the impact of shutdowns in the rest of the world while benefiting from the rebound we are seeing in China. Total demand will depend on the speed of the economic recovery," Qualcomm CEO Steve Mollenkopf said in a statement.
Qualcomm, however, has not changed its 5G forecast for 2020. "As we look to the second half of calendar 2020, while there are a few regions with minor delays in 5G network deployments. Overall, 5G is progressing as planned and we continue to be well positioned to drive the rapid adoption of 5G globally," Mollenkopf added.
The chip-maker has entered into new long-term global patent license agreements with OPPO and Vivo.
"Our ability to finalize these 5G multimode agreements in a challenging environment reiterates the strength of our IP portfolio and the relationship with these customers. In the second fiscal quarter, due to the spread of COVID-19, we saw a reduction in 3G, 4G, 5G handset shipments of approximately 21% compared to our prior expectations and on a year-over-year basis," explained Akash Palkhiwala, Qualcomm Chief Financial Officer.
