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Friday, 29 March 2024

Qualcomm says coronavirus may hurt phone industry

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Qualcomm says coronavirus may hurt phone industry
Qualcomm says coronavirus may hurt phone industry

Qualcomm, the world's biggest supplier of modem chips, says the coronavirus outbreak in China may hurt the global mobile phone industry.

Gloria Tso reports.

The world's biggest supplier of modem chips, Qualcomm, says the coronavirus outbreak poses a threat to the global mobile phone industry.

The American company's Wednesday (February 5) comments put a dent in Qualcomm shares.

They fell nearly 4% in after-hours trade with fears over the virus overshadowing a better-than-expected estimate for Qualcomm's second quarter.

That predicted boost in revenue is another sign that a downturn that's dragged down the wider chips industry is ending.

And despite fears over the outbreak Chief Executive Steve Mollenkopf said if there is a, quote, "supply chain or demand issue in China," Qualcomm itself still has the ability to to get back up from other regions.

Company officials also emphasized that the biggest markets for 5G mobile technology this year are expected to be outside China in the United States, Korea and Japan.

On Wednesday (February 5) the world's biggest supplier of modem chips for mobile devices- -said the coronavirus outbreak in China which has infected thousands- -poses a potential threat to the mobile phone industry.

The comments, made by American company Qualcomm, had a near-immediate impact.

Qualcomm's shares fell as much as 3.75% in after-hours trade- -even as the company forecast revenue for its second quarter largely above Wall Street estimates- -in the latest sign that the industry downturn was ending.

(Qualcomm forecast total revenue in the range of between $4.9 billion and $5.7 billion for its second quarter, the mid-point of which is largely above analysts' average estimate of $5.08 billion, according to IBES data from Refinitiv.)

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