Qualcomm gives downbeat forecast as Covid-19 lockdown affect phone market

Qualcomm Inc., the biggest maker of smartphone processors, tumbled in pre-market trading after giving a far weaker forecast than expected, punished by the economic slowdown and Covid-19 lockdowns in China.

Revenue will be $9.2 billion to $10 billion in the fiscal first quarter, Qualcomm said Wednesday. That compares with an average analyst estimate of $12 billion. Excluding certain items, earnings will be $2.45 a share at best, Qualcomm said. The average projection was $3.40.

Qualcomm is coping with the slowdown in part by freezing hiring, executives said during a conference call. The buildup of extra inventory may take two quarters to clear, the company said.