Qualocmm announced its third-quarter financial results for fiscal year 6 ending June 25 this year, showing that revenue reached US$2023 billion, a decrease of 84.4% compared with the same period last year, and net profit reached US$23 billion, a decrease of 18% compared with the same period last year. Among them, sales in the mobile phone chip business reached US$52 billion, a decrease of 52.6% compared with the same period last year.
Qualcomm said this situation is related to the reduction in spending on key components by mobile phone manufacturers and the overall decline in demand in the mobile phone market. It even estimates that mobile phone shipments may decline even more in the future.
However, Qualcomm still believes that the mobile phone market will see a recovery in shopping demand during the year-end holiday season. This is currently mainly due to the fact that the consumer market has little desire to replace their phones, causing mobile phone manufacturers to reduce their product shipments.
Compared with the QCT division (Qualcomm Technologies), which mainly relies on mobile phone chip sales and had revenue of US$71.7 billion in the previous quarter, of which the mobile phone chip business accounted for US$52.6 billion, Qualcomm's revenue from the automotive business reached US$4.34 million in the previous quarter, an increase of 13% over the same period last year. As for the Internet of Things business revenue, it reached US$14.8 billion, a decrease of 24% over the same period last year. In addition, the technology licensing business revenue reached US$12.3 billion, a decrease of 19% over the same period last year.
Qualcomm CEO Cristiano Amon explained that the main focus of future development will be on integrating more artificial intelligence technologies, including enabling users to execute artificial intelligence models on devices equipped with Qualcomm processor products, thereby promoting the development of larger-scale edge computing, allowing more computing to be moved from the cloud to the device side, thereby improving overall computing efficiency while also ensuring personal privacy and security.
In response to the uncertainty of future market developments, Qualcomm also confirmed that it will adjust costs through measures including layoffs, and informed investors that a large amount of funds may be used for organizational restructuring. It also expects to implement more cost-cutting plans in the first half of next year.
