Qualcomm (QCOM, Financial) is set to release its fiscal Q2 2025 earnings soon. UBS analysts anticipate that the results will align with expectations, but the company's guidance may reflect uncertainties. Analysts highlight global smartphone demand challenges due to tariffs and macroeconomic factors, predicting Qualcomm's Q3 guidance to fall below typical seasonal levels, with a slight decline expected.
The report notes weaker-than-expected iPhone sales in Q1 2024, with Apple's new iPhone SE using an in-house modem, reducing some Qualcomm modem orders. However, this impact is limited, affecting only a small percentage of iPhone sales. Qualcomm derives about 75% of its mobile revenue from Android, with mixed sales performance. The Samsung Galaxy S25, featuring Qualcomm's Snapdragon chip, offers some positive momentum for the Android segment.
In the PC market, Qualcomm's shipment growth is projected at 5% for Q3, maintaining a 1.8% market share. However, competition from AMD and Intel, along with slowing Elite X product sales, suggests challenges ahead.
Overall, Qualcomm's reliance on China, which accounts for about 66% of its revenue, poses risks amid ongoing tariff uncertainties.
