Qualcomm’s outlook weighed down by Huawei’s smartphone gains in China

Qualcomm Inc’s quarterly revenue and profit forecast fell short of Wall Street targets, driven by Huawei Technologies Co Ltd’s [HWT.UL] strong gains in the Chinese smartphone market, the U.S. company said, sending its shares down as much as 6%.

In an interview on Wednesday, Qualcomm Chief Executive Steve Mollenkopf told Reuters Huawei had stolen market share mainly from its domestic rivals such as Xiaomi Corp , Oppo and Vivo, all of which are major Qualcomm customers.

Huawei’s advance has spurred other phone makers to cancel 4G models planned for the rest of this year and instead focus on 5G models for release early next year that could drive growth for Qualcomm, he added.