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Qualcomm chip shipment forecast lower than expected, Europe to blame

Updated Dec 19th, 2018 7:22PM EST

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Qualcomm said it expects to ship between 120 million and 125 million chips during the quarter ending in September, a figure that is lower than the 130 million units MLM Partners LLC analyst Tero Kuittinen expected the company to move. The lower projection hit Qualcomm in late trading on Tuesday when its stock price fell 3.8%. Qualcomm blamed the lower than expected forecast on a weak European economy and said that consumers there aren’t buying new phones as quickly. “Chip units for autumn are light,” Qualcomm chief financial officer Bill Keitel said during a conference call. “The blame likely lies in Europe. European inventory correction now seems to be a fact instead of a theory. We reduced a bit our forecast for how many new CDMA-based units would sell into Europe. The situation demands that we still be cautious.” The company also noted that it hopes to begin working with manufacturers to build its Snapdragon processor into tablets. That chip is mostly used in smartphones now and manufacturers such as Samsung and Motorola have instead used NVIDIA’s dual-core Tegra 2 chip to power Android tablets.