Qualcomm Reportedly Plans Return to Server Market
Qualcomm is contemplating a return to the server market with a brand new chip in a bid to lower its reliance on smartphones, Bloomberg Information reported on Thursday, citing folks acquainted with its plan. Shares of Qualcomm rose practically Three p.c in afternoon buying and selling. The chipmaker is looking for prospects for a product stemming from its buy of Nuvia, the report stated, including that Amazon.com’s cloud division, Amazon Net Companies (AWS), has agreed to try Qualcomm’s choices.
Amazon confirmed that it has agreed to try the providing, whereas Qualcomm stated it doesn’t touch upon rumours and directed Reuters to its press launch when it closed the Nuvia deal in March’s final 12 months.
In San Diego-based Qualcomm July forecast fourth-quarter income under Wall Avenue targets, bracing for a tough economic system and a slowdown in smartphone demand that would damage its mainstay handset chip enterprise.
Picture sourced by bbc.com
“We count on the elevated uncertainty within the world economic system and the effect of COVID measures in China will trigger prospects to behave with a warning in managing their purchases within the second half,” stated Chief Monetary Officer Akash Palkhiwala, at the time of the earnings.
The Ukraine disaster and China lockdowns have additionally worsened supply-chain snags and damaged demand, forcing many telephone makers to chop orders for chips.
The corporate now expects smartphone gross sales to fall 5 p.c this 12 months, in contrast with its prior outlook for flat development. IDC had projected a 3.5 p.c drop in smartphone shipments.
Picture sourced by theverge.com
Greater than half of Qualcomm’s complete gross sales come from the handset section, which makes modem chips for Apple iPhones and chips that energy some fashions of Samsung’s Galaxy S collection.
Firm executives reiterated that Qualcomm’s deal with supplying chips to premium telephones and its push to diversify into different sectors equivalent to automotive would cushion the hit from cooling smartphone demand.
© Thomson Reuters 2022
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