Qualcomm's fiscal results for the second quarter of 2015 showed a big drop in its profits. The company, which at the moment is the exclusive supplier of processors for Windows Phone devices, is also cutting its overall outlook for the rest of the year.
Net income for the quarter that ended in late March came in at $1.05 billion, well behind the $1.96 billion it earned from the same period a year ago. Part of that reduction was due to the company paying a $975 million fine to the government of China in order to settle an antitrust dispute. Revenues for the quarter were $6.89 billion, compared to $6.37 billion from a year ago.
Qualcomm is now predicting that its overall revenues for the entire year of 2015 will be between $25 billion and $27 billion, well below the company's previous prediction of between $26.3 billion and $28 billion. Qualcomm said it was making this shift due to two factors:
- The increased impact of customer share shifts within the premium tier, which will reduce our sales of our integrated Snapdragon processors and skew our product mix towards modem chipsets in this tier; and
- A decline in our share at a large customer.
As Android Central mentioned, the unnamed "large customer" was Samsung, who elected to not use Qualcomm's Snapdragon 810 in its Galaxy S6 smartphone in favor of its own Exynos processor.
There are also rumors that Microsoft and other OEMs could decide to use Intel's Atom x3 processor inside devices running Windows 10 for phone when it officially launches later in 2015. If that happens, that could impact Qualcomm's earnings even more.
Source: Qualcomm (PDF)