Mobile Chip Giant QUALCOMM Downsizing In China And Taiwan Amid Lingering Industry Challenges: Report
Portfolio Pulse from Nabaparna Bhattacharya
QUALCOMM Incorporated (NASDAQ:QCOM) is reportedly cutting hundreds of staff in China and Taiwan due to a longer-than-expected industry downturn and slow recovery. The company's Q3 results showed a 23% YoY fall in revenues. QUALCOMM is also facing competition from Huawei Technologies, which recently unveiled a new 7nm processor. However, QUALCOMM's three-year pact with Apple Inc (NASDAQ:AAPL), which accounted for 16% of its earnings last year, may instill confidence in investors.
September 22, 2023 | 11:59 am
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QUALCOMM is downsizing in China and Taiwan due to industry challenges, with Q3 revenues falling 23% YoY. The company is also facing competition from Huawei's new 7nm processor. However, a three-year pact with Apple may boost investor confidence.
The news of downsizing and falling revenues indicates a challenging business environment for QUALCOMM, which could negatively impact its stock price. However, the company's pact with Apple could provide some stability.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Apple's three-year pact with QUALCOMM, which accounted for 16% of QUALCOMM's earnings last year, may instill confidence in investors.
While the news directly impacts QUALCOMM, it also indirectly affects Apple as the pact with QUALCOMM accounted for a significant portion of QUALCOMM's earnings. However, the impact on Apple's stock price is likely to be neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50