(Reuters) – Qualcomm forecast current-quarter profit below analysts’ estimates as demand for the company’s chips for mobile devices weakened amid stiff competition from Chinese and Taiwanese rivals.
Shares of Qualcomm (qcom), whose customers include Apple, fell 3.4% to $46.85 in extended trading on Wednesday.
Qualcomm, the biggest maker of chips for mobile devices, is expected to also be hurt by Apple’s slowing growth.
The iPhone maker forecast on Tuesday its first quarterly revenue drop in 13 years and reported the slowest-ever increase in iPhone shipments as the critical Chinese market showed signs of weakening.
Qualcomm forecast an adjusted profit of 90 cents to $1.00 per share and revenue of $4.9 billion-$5.7 billion for the first quarter.
Analysts on average were expecting earnings of $1.01 per share and revenue of $5.68 billion, according to Thomson Reuters I/B/E/S.
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Qualcomm’s weak forecast overshadowed its better-than-expected revenue and profit for the first quarter.
The net income attributable to Qualcomm fell 24% to $1.50 billion, or 99 cents per share, in the quarter ended Dec. 27.
Excluding items, the company earned 97 cents per share, beating the average analyst estimate of 90 cents.
Total revenue fell 18.7% to $5.78 billion.
The company reported adjusted revenue of $5.77 billion, topping analysts’ expectations of $5.69 billion.