Qualcomm is predicting a ‘double-digit’ drop in phone sales

An illustration of the Qualcomm logo.
Qualcomm is expecting phone sales to be less than expected. | Illustration by Alex Castro / The Verge

Qualcomm, one of the primary providers of chips and modems in phones, is predicting that phone sales will be down much more than expected in 2022 due to the uncertain economic environment, according to the company’s latest earnings release published Wednesday.

“Given the uncertainty caused by the macroeconomic environment, we are updating our guidance for calendar year 2022 3G/4G/5G handset volumes from a year-over-year mid-single-digit percentage decline, to a low double-digit percentage decline,” Qualcomm wrote. The company also says that “rapid deterioration in demand” and “easing of supply constraints” in the semiconductor industry have led to increased inventory and that Qualcomm’s largest customers are having to draw down their...

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