Qualcomm facing declining sales for fiscal year 2016

Qualcomm facing declining sales for fiscal year 2016
Qualcomm facing declining sales for fiscal year 2016
Company blames rise in Asian competitors for its lower profits and sales of Snapdragon SoCs.

Qualcomm has made public its first quarter results for fiscal year 2016 which ended on December 27, 2015. As predicted, sales fell sharply from 7.1 billion USD a year earlier to 5.8 billion USD for a drop of almost 19 percent. Operating profits also fell from 2.1 billion to 1.7 billion for a drop of 18 percent. Net profit was hit hardest from 2 billion in Q1 FY2015 to just 1.5 billion in Q1 FY2016.

The Snapdragon series suffered as a whole with fewer sales throughout the entire 200, 400, 600, and 800 range. Qualcomm sold approximately 242 million MSM chips for its latest fiscal quarter representing a decrease of about 10 percent from a year earlier.

As for the current Q2 FY2016 quarter, Qualcomm is expecting more gloomy results with revenue falling by as much as 17 to 29 percent. CEO Steve Mollenkopf remains optimistic, however, and believes that the new Snapdragon 820 SoCs can boost his company back on track by the end of the year.

Qualcomm faces intense competition in the budget range from MediaTek SoCs while more mainstream and higher-end devices from the bigger manufacturers are turning to HiSilicon Kirin or Samsung Exynos solutions.


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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2016 01 > Qualcomm facing declining sales for fiscal year 2016
Ronald Tiefenthäler/ Allen Ngo, 2016-01-29 (Update: 2016-01-29)
Allen Ngo
Allen Ngo - US Editor in Chief
After graduating with a B.S. in environmental hydrodynamics from the University of California, I studied reactor physics to become licensed by the U.S. NRC to operate nuclear reactors. There's a striking level of appreciation you gain for everyday consumer electronics after working with modern nuclear reactivity systems astonishingly powered by computers from the 80s. When I'm not managing day-to-day activities and US review articles on Notebookcheck, you can catch me following the eSports scene and the latest gaming news.