Qualcomm's Smartphone Business Is Hurting. Data Centers Could Fuel Its Next Act. — Barrons.com

What happened

Qualcomm is due to report fiscal fourth-quarter earnings Wednesday afternoon as smartphone demand weakens. Analysts expect chip sales to fall 11% year over year to $8.7 billion, including a 25% decline in smartphone chip revenue to $5.2 billion. Apple is replacing Qualcomm modem chips with its own.

Confirmed

Global impact / market context

Smartphones are Qualcomm’s core business, so falling shipments and lower Apple modem use can reduce sales and weaken cash available to fund other efforts. The article’s expected declines are forecasts, not reported results, while any benefit from data centers is not described in the supplied text.

Analyst inference

The article links smartphone pressure to high prices for memory and storage chips and a generational shortage, alongside weaker Android shipments. It also says broader negative technology sentiment has weighed on Qualcomm shares, which fell 11.3% over three trading days.

Confirmed

What to watch

1. Qualcomm’s Wednesday earnings report will show whether actual fourth-quarter chip sales and smartphone revenue match analysts’ expected declines of 11% and 25%, respectively. Analyst inference
2. Watch for an update on Apple’s plan to replace Qualcomm modems; completing that shift would remove a source of Qualcomm smartphone-chip revenue. Analyst inference
3. The article’s headline points to data centers as a possible next act, but the supplied article text gives no detail on related products, sales, or investment. Analyst inference

Evidence

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