What you need to know
- Qualcomm is expecting a 30% drop in smartphone shipments in Q3 2020.
- This prediction comes as shipments decreased by 21% in Q2.
- The company is still, however, maintaining its 5G expectations.
Qualcomm is expected to supply the 5G modem for Apple's upcoming iPhone 12 lineup, but the company is predicting an overall major decrease in smartphone sales for 2020. According to a new report from CNBC, the chipmaker expects a 30% drop in smartphone shipments next quarter.
This prediction is based on the fact the global smartphone market has declined by 21% in the second quarter of 2020, a trend that Qualcomm expects to continue into the next quarter.
That said, the company's plans for 5G are not slowing down. Qualcomm CEO Steve Mollenkopf says that "overall, 5G is progressing as planned."
Patrick Moorhead, president and analyst at Moor Insights, says that Qualcomm is currently sticking to its production schedule of 175-225 million units.
While the overall smartphone market is expected to take a hit, it appears that Qualcomm is still betting big on 5G and the new iPhone 12.
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Joe Wituschek is a Contributor at iMore. With over ten years in the technology industry, one of them being at Apple, Joe now covers the company for the website. In addition to covering breaking news, Joe also writes editorials and reviews for a range of products. He fell in love with Apple products when he got an iPod nano for Christmas almost twenty years ago. Despite being considered a "heavy" user, he has always preferred the consumer-focused products like the MacBook Air, iPad mini, and iPhone 13 mini. He will fight to the death to keep a mini iPhone in the lineup. In his free time, Joe enjoys video games, movies, photography, running, and basically everything outdoors.