Qualcomm Still Bitten by Apple

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Qualcomm

QCOM -8.16%

might have nowhere to go yet up, yet going adult is still going to take a while.

That was clear following a company’s mercantile fourth entertain formula Wednesday afternoon. They were generally brazen of Wall Street’s expectations, even with altogether income branch disastrous again and practiced handling gain descending by 19% year over year. But Qualcomm also projected revenues for a Dec entertain in a operation of $4.5 billion to $5.3 billion, that would indicate a dump of 20% year over year during a midpoint. Even that is with a change in accounting that indeed pushes some-more of a company’s chartering income into a initial mercantile entertain than had been expected.

In short, a chip builder that still generates many of a business by smartphones is carrying a tough year and faces another tough one. Smartphone sales are slumping globally, and that trend seems doubtful to change subsequent year, as rising prices inspire consumers to keep holding on to their existent phones for longer. Qualcomm’s near-term business also is smarting from a authorised fight with

Apple
Inc.,

that has close out a association from a latest era of iPhones. Qualcomm has projected modem chip shipments in a operation of 175 million to 195 million for a Dec quarter, a median of that implies a record-sized 22% dump year over year.

Qualcomm is fixation high hopes on a launch of 5G networks subsequent year. Most analysts don’t trust 5G will start generating poignant sales of handsets and other inclination until 2020, though. A allotment with Apple also doesn’t seem expected soon, generally after Qualcomm got strike with a statute from a sovereign decider on Tuesday that seems to plea some of a categorical beliefs of a chartering business. That statute was partial of Qualcomm’s antitrust brawl with a Federal Trade Commission, yet Qualcomm says it believes a statute is incorrect, and it still expects a full hearing on a matter in January.

Qualcomm’s shares fell 5% Wednesday after a formula and already were in disastrous domain for a year. The stream mixed of about 14 times brazen gain might extent serve downside. After a bruising year of authorised wars, supervision probes, antagonistic takeover attempts and a unsuccessful acquisition, Qualcomm investors are some-more than prepared for some good news. It stays elusive.

Write to Dan Gallagher during dan.gallagher@wsj.com

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