Qualcomm Gives Rosy Forecast as Smartphone Chip Sales Soar
- Phone sales are booming, but other areas disappoint investors
- Chips for cars and Internet of Things miss analysts’ estimates
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Qualcomm Inc., the biggest maker of chips that run smartphones, slipped as much as 4.2% in New York trading after supply shortages hampered efforts to expand beyond its main business in the latest quarter.
While overall sales and profit easily topped analysts’ estimates, the company fell short of projections in certain categories, including chips for cars, the Internet of Things and radio-frequency components. The pain was partially self-inflicted: The company prioritized sales to phone makers in China during the run-up to the Lunar New Year shopping season -- at the expense of other categories.