Qualcomm lost a large customer, reported in Q1 fiscal 2015 results

By A Vamsee
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The San Diego based Qualcomm has announced it's Q1 fiscal 2015 results. Even before this year's quarterly earnings calls, the chipmaker expected that the Q1 2015 will have more profits due to Snapdragon 810 SoC but the financial performance is not up to the mark comparing to previous quarterly earnings.

The effect wasn't too severe, the net profit was expected to be around $26.8 to $28.8 billions but now it is somewhere between $26 billion to $28 billion.

Qualcomm lost a large customer, reported in Q1 fiscal 2015 results

"We delivered a strong quarter, achieving record quarterly revenues and Non-GAAP operating income, and we also are very pleased to have resolved our previously disclosed dispute with a licensee in China, Looking ahead, we have lowered our revenue outlook for our semiconductor business for the second half of the fiscal year and lowered our EPS expectations. These changes reflect our revised expectations related to OEM mix, sales to a large customer and heightened competition in China" said Steve Mollenkopf, CEO of Qualcomm Incorporated.

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Qualcomm had to change their chinese business plans as one of it's major customer recently dropped the idea of using Snapdragon 810 SoC in it's next flagship phones. It didn't revealed the company name, but from a recent report Samsung is working on Exynos 7420 chipset and likely to integrate the same in the upcoming Galaxy S6. Other companies like Apple have their own processors, and recently Chinese OEM's like Lenovo are going with cheaper processors like MediaTek than Qualcomm inorder to reduce the device cost. All these things made Qualcomm to keep lesser expectations for the second quarter of the fiscal 2015.

From the past few years all the flagship phones are powered by Qualcomm chipsets but now everything is changed. Loosing a large customer like Samsung is unexpected which showed a large impact on the company's financial earnings.

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