Qualcomm sees China handset revenue bottoming in Q3

Qualcomm (QCOM) said in earnings presentation slides: “Last quarter, we highlighted that increasing demand for memory in AI data centers was driving uncertainty in memory supply and price increases to handset OEMs, and as a result, handset OEMs, particularly in China, were taking a cautious approach by reducing handset build plans and drawing down channel inventory. These dynamics played out as expected during the second fiscal quarter and are also reflected in our third quarter guidance. As a result, in both quarters, our China QCT Android shipments are meaningfully below the scale of end-consumer handset demand. We now estimate that QCT handset revenues from Chinese customers will reach a bottom in the third quarter and return to sequential growth in the following quarter.”