Memory Shortage Hits Qualcomm, Arm Smartphone Chip Sales

A global memory shortage is hurting smartphone chip makers. The memory shortage chips problem has slowed orders for major companies. As a result, Qualcomm and Arm reported weaker sales. Both firms supply key technology for smartphones worldwide. However, phone makers cannot secure enough memory parts. Therefore, they cannot ship complete devices on time.

Qualcomm Faces Slower Orders

Qualcomm has seen weaker demand from customers. Many clients lack the memory needed to finish phones. As a result, the company expects lower revenue this quarter. CEO Cristiano Amon said the shortage affects the whole sector. He warned that rising memory prices will shape the industry this year.
In addition, the supply crunch may continue longer than expected. After the earnings report, Qualcomm shares dropped nearly 10% in after hours trading. Investors reacted quickly to the cautious outlook.

Arm Warns of Royalty Pressure

Arm also feels the impact of the memory shortage. The company designs chip architecture used in many smartphones. Therefore, slower phone production reduces its royalty income.
Chief Financial Officer Jason Child said royalties could fall by about 2% next year.
The drop links directly to limited memory supplies. As a result, overall mobile processor sales may stay weak. Arm shares fell around 8% after the announcement. The decline shows investor concern about future demand.

Supply Problems May Last Until 2027

Executives expect the memory shortage to continue through the fiscal year. Some analysts believe the pressure could extend into 2027. Consequently, smartphone shipments may stay below expectations. Industry experts say memory chips remain a key bottleneck. Until supply improves, smartphone makers may struggle to meet demand. However, companies hope production will stabilize as new capacity comes online.