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Qualcomm on Wednesday said it expects the smartphone industry to ship 30% fewer phones in the June quarter amid the COVID-19 crisis, but maintains relatively strong demand for 5G smartphones across 2020.
The San Diego-based chipmaker is the world's largest provider of smartphone modems and, as a key supply chain partner of tech giants like Apple and Samsung, often has deep insights into the smartphone market.
Its lowered shipment prediction for the June quarter, which it revealed on Wednesday, follows a previous 21% drop in smartphone demand in the first three months of the year due to coronavirus.
Qualcomm sold 129 million modems in its second quarter of 2020, and expects to sell between 125 to 145 million in the third.
Previous predictions suggested that 2020 would be a strong year for the smartphone industry due to the rollout of 5G-equipped devices, such as Apple's rumored "iPhone 12" lineup. However, the COVID-19 pandemic has snarled those plans and might soften demand well into the future. While Qualcomm originally expected to ship about 175 billion to 185 billion modems in 2020, it's no longer providing total market predictions.
Despite that, the chipmaker said it expects vendors to ship 175 million to 225 million 5G smartphones this year. That's in-line with some estimates made before the COVID-19 pandemic, but firms like Strategy Analytics are still expecting 5G shipments to be lower in 2020 than originally anticipated.
Currently, the so-called "iPhone 12" appears to be on track for a release in the fall. And while analysts forecast that the lineup could play a part in Apple's post-COVID recovery, market demand is still likely to be lower than expected.
Apple will report earnings for its second fiscal quarter of 2020 on Thursday. While uncertainties remain about the market, many analysts remain upbeat about Apple's long-term prospects.
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Wesley Hilliard
AppleInsider Staff
Andrew Orr
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10 Comments
The iPhone will make up the largest chunk of all 5G devices on the planet a month after it launches and will never look back.
It seems QC has suffered a double whammy from Huawei in China.
Huawei has aggressively lowered (and continues to do) its use of QC SoCs in its own phones while picking up marketshare, taking sales away from its Chinese rivals (which use QC chipsets) in the process.
Everyone is going to hurt this year. A lot of people are hurting right now. All payments from rent to car payments are not being made. Unemployment is high and going higher. By the time the iPhone is ready for launch a large amount of people will not be able to afford them.
A friend gives away the free lifeline phones. He has seen his sales double in the past month. People have turned off service, selling there phones to get in-line for a free phone and service. Apple IMO is going to have to lower the price on all models in order to sell them. If stores are not open by the time the 12 goes on sale and people can't touch and feel them, expect more sales loss. Then on the other side you have others willing to sell a kidney to get the latest and newest iPhone.