Qualcomm confirms restructure plan as Q3 profit drops

Qualcomm confirmed the implementation of a “Strategic Realignment Plan”, which Steve Mollenkopf, its CEO, said represent “fundamental changes” for the company.Qualcomm reduced the outlook for its semiconductor business in the fourth quarter, “driven primarily by factors impacting premium-tier demand”. These include “increased concentration” in this segment reducing demand for some Qualcomm-powered devices; lower demand for its premium chipsets from an unnamed customer; and lower sell-through in China of some products using its premium-tier silicon. In Qualcomm’s conference call George Davis, CFO, said that (a major issue was) the loss of a “major vertical customer” – Samsung.