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Saturday, April 25, 2015

Qualcomm cuts outlook for fiscal 2015, blames Samsung

Qualcomm has again cut its revenue forecast for fiscal 2015, with the company now expecting a revenue of between $25 billion and $27 billion, compared to $26.3 - $28 billion it was expecting earlier. The chipmaker has also cut its earnings outlook for the year.
The warning comes from the company's report on its fiscal second quarter, which saw a 45% decline in its year-on-year earnings.
"While we remain confident in the significant growth opportunities ahead, we are reducing our QCT outlook for fiscal 2015, primarily due to the increased impact of customer share shifts within the premium tier and a decline in our share at a large customer," said CEO Steve Mollenkopf.
No points for guessing that Mollenkopf was referring to Samsung, which ditched Qualcomm's Snapdragon 810 chipset in favor of its own Exynos 7420 for both new Galaxy models, the S6 and S6 Edge.
Mollenkopf also announced that the company will look at ways to cut costs. "In addition to our ongoing expense management initiatives, we have initiated a comprehensive review of our cost structure to identify opportunities to improve operating margins while at the same time extending our technology and product leadership positions," he said.

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