Qualcomm facing declining sales for fiscal year 2016

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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