Demand in the mobile phone market is declining, Qualcomm’s revenue has dropped significantly

Qualcomm recently announced its financial results for the second quarter of fiscal year 2023, reporting revenues of $9.275 billion and net profits of $1.704 billion. However, amid a decline in mobile market demand, Qualcomm CEO Cristiano Amon declared that the company will implement cost-cutting and operational streamlining measures, reducing operating expenses by 5% compared to last year.

Examining individual business segments, Qualcomm Technologies’ revenue reached $7.942 billion, a 17% decrease compared to the same period last year, while Qualcomm’s licensing business revenue amounted to $1.29 billion, an 18% decline compared to the same period last year.

Further breaking down Qualcomm Technologies’ revenue reveals that mobile product-related revenue was $6.105 billion, a 17% decline compared to the same period last year. In contrast, vehicle-related product revenue reached $447 million, a 20% increase compared to the same period last year, while IoT product revenue reached $1.39 billion, a 24% decrease compared to the same period last year.

Despite Qualcomm’s previous announcements of the Snapdragon X75 5G modem chip and the Snapdragon 7+ Gen 2 processor, emphasizing its leading position in mobile AI technology applications, the decline in mobile market demand and economic uncertainties have significantly diminished consumers’ willingness to upgrade their smartphones, subsequently impacting Qualcomm’s financial performance last quarter.

Prior to this, Business Today reported that Qualcomm is expected to announce layoffs affecting approximately 5% of its workforce, resulting in the elimination of around 2,550 jobs.