Qualcomm says China virus threatens phone industry disruption

FILE PHOTO – A Qualcomm sign is seen at the second China International Import Expo (CIIE) in Shanghai, China November 6, 2019. REUTERS/Aly Song

(Reuters) – Qualcomm Inc (QCOM.O) raised concerns around the threat to the mobile phone industry’s supply chain from the coronavirus outbreak in China, dragging down shares.

On a conference call with investors, Chief Financial Officer Akash Palkhiwala said Qualcomm expects “significant uncertainty around the impact from the coronavirus on handset demand and supply chain.”

Shares fell 3.3% in after-hours trade.

The San Diego-based chip supplier forecast second-quarter revenue largely above Wall Street estimates on Wednesday, in the latest sign that a protracted slowdown in the global chip industry is easing.

Qualcomm is the world’s biggest supplier of “modem” chips that connect mobile phones and other devices to wireless data networks.

Reporting by Munsif Vengattil in Bengaluru and Stephen Nellis in San Francisco; Editing by Sriraj Kalluvila and Chris Reese

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