Qualcomm better-than-expected revenue forecast; sees strong demand for premium smartphones

Qualcomm gives better-than-expected revenue forecast onThursday as the company highlighted strong demand for “premium tier” or “AI-powered” smartphones that require the most advanced chips.
Kif Leswing for CNBC:
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Here’s how it did versus LSEG consensus estimates for the quarter ended March 24:
• Earnings per share: $2.44 adjusted vs. $2.32 expected
• Revenue: $9.39 billion adjusted vs. $9.34 billion expected
Net income during the quarter was $2.33 billion, or $2.06 per share, versus $1.7 billion, or $1.52 per share, in the year-earlier period.
Qualcomm said it expected between $8.8 billion and $9.6 billion in sales in the current quarter, higher than Wall Street expectations of $9.05 billion.
Qualcomm said on the earnings call that it expected overall handset revenues to decline during the current quarter by “mid-single digit percent” because of a lack of summer smartphone launches, which is a typical seasonal pattern.
Qualcomm’s most important business is its handsets business. It sells processors, modems and other parts for smartphones — primarily Android devices, but also some modem parts in iPhones.
Handset sales rose 1% year-over-year to $6.18 billion, signaling that the smartphone market may be recovering after a few years of post-covid slumping. Qualcomm called out strong demand for “premium tier” smartphones that require the most advanced chips, especially in China.

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MacDailyNews Take: Bodes well for Apple, provided they do enough in terms of AI to spur next-gen iPhone demand.
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