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© Qualcomm Components | February 13, 2020

Qualcomm: Coronavirus may impact phone industry

Chip maker Qualcomm Inc has issued a statement that the coronavirus outbreak in China poses a potential threat to the mobile phone industry.

The San Diego-based company’s comments resulted in a hit to chip-makers stock shares, which plummeted approximately 3.75% in after-hours trading, according to a Reuters report. On a conference call with investors following the release of quarterly results this week, Qualcomm CFO Akash Palkhiwala said the company expects “significant uncertainty around the impact from the coronavirus on handset demand and supply chain,” according to Reuters. Qualcomm’s forecast revenue for Q2FY was significantly above estimates generated by Wall Street, a hint that the sluggishness being experienced by the global chip industry is starting to turn around. Also on the call, Qualcomm predicted the strongest 5G markets in 2020 would be in the U.S., Korea and Japan, and assured investors the company was situated to withstand virus-related disruptions. Reuters quoted Qualcomm CEO Steve Mollenkopf as saying, “If we have an issue, a supply chain issue or demand issue in China, we tend to have the ability to have other regions to back it up. So we tend to look at the business in terms of our planning. We want to make sure that we maintain that strength across different markets.”
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October 26 2020 3:29 pm V18.11.11-2