<p> <i> 13.03 pm </i>

Chipmaker Qualcomm hit by Apple surge

Qualcomm on Wednesday cut its outlook for the year, as the rise of Apple’s iPhone dents sales of leading smartphone makers that the chipmaker counts as its key customers, notably Samsung.

Its shares were off nearly 7 per cent in after-market trading as the company forecast fiscal year 2015 sales of $26bn-$28bn, a decrease from its previous forecast of up to $28.8bn in sales.

In a further setback, Qualcomm said that its top-of-the-line Snapdragon chip was not expected to be included in “a large customer’s flagship device” — a reference to Samsung’s upcoming Galaxy S6 phone. Samsung is reportedly using a chip it made itself for that model.

Qualcomm’s Snapdragon line is used by companies including Samsung, but not Apple.

Apple on Tuesday reported its strongest quarter ever with sales of 74.5m iPhones. That global growth is coming at the expense of companies including Samsung, whose flagship Galaxy S5 has received middling reviews since its launch last April.

“A shift in share . . . at the premium tier . . . has reduced our near-term opportunity for sales of our integrated Snapdragon processors,” Qualcomm said.

It is also still dealing with the overhang of an antitrust investigation by China’s National Development and Reform Commission. Analysts say resolution of the probe could lead to Qualcomm lowering its prices in China.

Qualcomm claims some companies in the country are not fully reporting sales involving Qualcomm devices, or are seeking to delay agreeing new licences while the investigation continues.

China is also becoming a more competitive market. Xiaomi, the fast-growing Chinese smartphone maker, recently took a stake in chip company Leadcore Technologies that competes with Qualcomm on supplying cheap chips for 4G smartphones, say analysts with Barclays.

Qualcomm reported first-quarter revenue of $7.1bn, up 7 per cent year on year and towards the high end of its guidance. Diluted earnings per share were $1.34, up 6 per cent and above expectations of $1.25 per share.</p>