Qualcomm's Smartphone Chip Sales Continue to Decline Despite Revenue Beat

Qualcomm has given a bleak outlook for Q3 revenue and profit, citing weaker global sales of handsets and macroeconomic headwinds. The chip designer hopes smartphone sales will recover in China in H2 2021, but CEO Cristiano Amon said they have not seen evidence of meaningful recovery. Qualcomm did not name the customer, but analysts believe it was Apple, which makes its own application processor. The company also faces stiffer competition, especially for high-end smartphone chips, from Taiwan's MediaTek. Qualcomm forecast total revenue of $8.1 billion to $8.9 billion in Q3, below analysts' expectations.