Looks like chip margin squeeze, as folks predicted before.
Some of you folks might get your wish after all….
I would not want to be @ QC when the anvil drops. And at this rate, it will drop by next quarter
SAN FRANCISCO, April 21 (Reuters) – Qualcomm Inc (QCOM.O) issued lower-than-expected revenue forecasts as cellphone chip prices stayed weak, sending its shares down more than 7 percent.
The forecasts for the current quarter and full year disappointed investors who had hoped that economic recovery in the United States and Europe would stabilize prices for Qualcomm’s chips and shore up royalties on patents.
Analysts had feared competition from the likes of ST-Ericsson and Infineon (IFXGn.DE) would pressure margins.
The world’s biggest maker of cellphone chips forecast on Wednesday current-quarter revenue of $2.5 billion to $2.7 billion, down from $2.74 billion in the year-ago period. Analysts on average had been expecting $2.66 billion.
“They’re feeling the recovery in emerging markets, but they’re not feeling it strong enough in developed markets,” said Broadpoint AmTech analyst Mark McKechnie.
