The world’s largest maker of smartphone chips and modems is warning that the Corona virus could seriously affect the global mobile industry.
Qualcomm said it had to lower expectations in earnings guidance for the next quarter in part due to a virus outbreak in China .
Qualcomm’s CFO Akash Palkhiwala said, “The complexity and unpredictability of the Corona disease has seriously affected the supply chain and demand for mobile devices.”
To date, this deadly virus has killed more than 560 people and infected more than 28,000 worldwide – most of the infections occurring in China. But their boom has affected global business , including retailers closing hundreds of stores and airlines canceling flights to and from China. These moves almost add fuel to the mobile market.
According to CNN, the smartphone industry is heavily dependent on China in terms of supply, production and sales, so the impact will be significant. Nearly half of Qualcomm’s revenue last year came from China, based on its latest annual report and some big customers like Apple.
Steve Mollenkopf, CEO of Qualcomm, said: “As the Corona epidemic continues, our focus is on many Qualcomm employees in China, customers, suppliers, families. as well as those affected by the epidemic in an unprecedented situation. ”
The chipmaker reported revenue of $ 5.08 billion in the latest quarter that ended in December, up 5% from the same period last year while down 13% in profits.
After this information, Qualcomm shares fell 2% at the end of yesterday’s session.
