Qualcomm phone chip sales fall 26% while automotive revenue climbs 89%

Qualcomm said Wednesday that revenue from automotive chips rose 89% to a record $1.99 billion in the quarter ended Sept. 27, up from $1.05 billion a year earlier and above the $1.66 billion forecast. Handset chip revenue, still Qualcomm’s largest business, fell 26% to $5.14 billion from $6.96 billion a year earlier and came in below estimates of $5.21 billion. The company said rising memory prices have increased costs for phone makers and hurt demand, while Android shipments in China have dropped. For the full year, automotive revenue rose 52% to $6 billion, while handset revenue fell 13% to $24.07 billion.