Chipmaker Qualcomm (QCOM) will report its third quarter earnings on Wednesday, giving investors a closer look at the impact the global memory shortage is having on smartphone sales and the status of the company's upcoming data center segment.
Qualcomm is working to diversify its business to reduce its dependence on its handset business, which has slowed over the years, as customers hold on to their phones for longer before upgrading.
And with smartphone makers increasing prices to offset the rising cost of memory and storage chips caused by the global AI build-out, the handset market is looking rough.
"The smartphone industry is not great," Bernstein ***** yst Stacy Rasgon told Yahoo Finance's Julie Hyman on Wednesday.
"Memory prices are going up, and AI is sort of sucking up a lot of the supply. And so it's just not leaving a lot for the smartphone players. And we're seeing unit growth has gone negative," he added.
#smartphone #qualcomm
Qualcomm is working to diversify its business to reduce its dependence on its handset business, which has slowed over the years, as customers hold on to their phones for longer before upgrading.
And with smartphone makers increasing prices to offset the rising cost of memory and storage chips caused by the global AI build-out, the handset market is looking rough.
"The smartphone industry is not great," Bernstein ***** yst Stacy Rasgon told Yahoo Finance's Julie Hyman on Wednesday.
"Memory prices are going up, and AI is sort of sucking up a lot of the supply. And so it's just not leaving a lot for the smartphone players. And we're seeing unit growth has gone negative," he added.
#smartphone #qualcomm
3 months ago
