**San Diego:** Qualcomm’s forecast for Q3 revenue falls short of analyst expectations due to current US-China tariffs. CFO Akash Palkhiwala signals minor demand changes but highlights ongoing trade tensions and evolving policy as key challenges for the semiconductor sector.
Mobile chip designer Qualcomm has issued a forecast for its third-quarter revenue that falls short of analyst expectations, a trend that mirrors concerns expressed by other major technology companies, including Snap and Samsung. During a conference call with analysts, Qualcomm’s Chief Financial Officer, Akash Palkhiwala, discussed the potential ramifications of the ongoing U.S. trade war, highlighting that current tariffs are influencing their revenue projections.
Palkhiwala noted, “The third-quarter estimates reflected the impact of the tariffs as they stand today.” However, he also indicated that the rapidly evolving nature of U.S.-China trade relations could lead to changes in this outlook. He remarked, “We do not see any material, direct impact – there is smaller direct impact and some minor changes in demand.” This statement suggests that, while the tariffs may create challenges, the effects on Qualcomm’s operations have been manageable thus far.
Qualcomm’s revenue forecast comes at a time of heightened scrutiny surrounding the semiconductor industry, which has faced pressures from geopolitical tensions and supply chain disruptions. The company’s warning adds to a growing narrative among tech firms, as businesses navigate the complexities of international trade policies and their subsequent impacts on market demand and operational capacity.
The trade conflict, primarily between the United States and China, has raised concerns over tariffs and restrictions that could affect technology transfer and components critical for manufacturing. With tech companies like Qualcomm, Snap, and Samsung reacting to these conditions, industry analysts are paying close attention to how these developments will influence future earnings and strategic planning.
As Qualcomm prepares for the third quarter, the broader implications of the trade war remain a significant factor in its operational forecasts, with potential adjustments depending on the progression of trade negotiations and policy changes.
Source: Noah Wire Services
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