Qualcomm Warns of Weak Profit as Apple Revenue Decline Speeds Up
Qualcomm issued a below-estimate Q4 profit forecast Wednesday, citing supply chain cost pressure and an accelerating drop in Apple revenue.
Qualcomm dealt investors a sobering outlook Wednesday, forecasting fourth-quarter profit below Wall Street expectations and warning that revenue tied to Apple products would erode faster than previously anticipated. The chipmaker blamed a combination of supply constraints and rising costs across its business for the downbeat guidance.
CEO Cristiano Amon told Reuters that cost inflation was not confined to memory chips — it had spread throughout the broader supply chain, compounding pressure on the company's margins. The candid admission underscores how persistent cost challenges continue to squeeze semiconductor firms even as demand signals remain mixed.
Read more Zijin Gold Drops Allied Gold Takeover, Keeps $295M Stake →
To fight back against margin erosion, Qualcomm plans to begin raising prices on September 1, Amon said. The move is designed to restore profitability to levels the company has historically maintained, signaling that customers — potentially including major device partners — will absorb at least some of the increased costs.
The dual headwinds of an accelerating Apple revenue decline and broader supply chain inflation place Qualcomm in a delicate position heading into the final stretch of its fiscal year. Analysts will be watching closely to see whether the September price increases are enough to stabilize margins or whether further guidance cuts lie ahead.
Continue reading at Yahoo
