Qualcomm Drops After Sales Forecast Signals Weak Demand in China
- CEO points to ongoing soft demand in biggest market for phones
- Apple licensing terms will be ‘consistent’ with program
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Qualcomm Inc. gave a lackluster third-quarter sales forecast, citing weaker demand for smartphones in China. The disappointing outlook overshadowed the benefits of settling a prolonged legal dispute with Apple Inc., sending the shares down in extended trading.
Fiscal third-quarter revenue will be $9.2 billion to $10.2 billion, the San Diego-based company said Wednesday in a statement. Excluding a one-time payment from Apple, revenue in the current period will be $4.7 billion to $5.5 billion. At the midpoint, that fell short of the $5.26 billion average estimate of analysts, according to data compiled by Bloomberg.