US chipmaker Qualcomm has made a dangerous assessment of the smartphone business in 2022, forecasting a drop in sales of at least 10%.
These are not very calm times for smartphone sales. To this we must add that the sales predictions established in May 2022 they predicted a 9% decline, which is now, after further analysis, expected to be well over 10%.
And it is that, Qualcomm, one of the main suppliers of chips for smartphones, foresees that the sales of these will drop much more than expected in 2022 due to the uncertain economic environmentaccording to the company’s latest earnings release published on Wednesday.
Among the possible factors that are already speculated in the media, there is talk of a strong impact on low sales due to the world economy. Rising cost of living due to inflation and a weaker economy is causing overall sales to decline and those who decide to buy a new smartphone prefer to opt for cheaper models.
Another interesting fact is that the sector it seems to have gone from a concern with scarcity to a problematic superabundance. The company claims that rapidly deteriorating demand and easing of supply constraints in the semiconductor industry have caused an increase in stock and that Qualcomm’s largest customers are having to reduce their stock.
Apple and Samsung on the ropes with forecasts of low smartphone sales
This is something we have already seen with the sharp drops in sales of the new iPhone 14 Plus, which, according to Apple, reduced chip production by more than 70%, something that is happening with its standard version, the iPhone 14.
“Given the uncertainty caused by the macroeconomic environment, we are updating our forecast for 3G/4G/5G handset volumes for the year 2022 from a single-digit percentage decline on the year to a double-digit percentage decline”wrote Qualcomm.
Samsung, for its part, says it is looking into the emerging market for foldables, such as the new Samsung Galaxy Z Flip 4, to help give a boost to its sales, which has also seen a nosedive. In June, it was claimed that Samsung then had 50 million smartphones in stock and very doubtful sales.
Google also seems somewhat concerned about sales of Samsung’s Galaxy S range, as customers are said to be switching to the iPhone. However, it seems that the Pixel line itself, with the recent Pixel 7, from the Android manufacturer it is selling quite well.
Qualcomm ends its report by assuring that it will be necessary to spend at least a couple more quarters with sales of smartphones down and economic decline until the situation improves.
