Qualcomm predicted that phone sales will be down much more than expected in 2022 due to the "uncertain economic environment."

“Given the uncertainty caused by the macroeconomic environment, we are updating our guidance for calendar year 2022 3G/4G/5G handset volumes from a year-over-year mid-single-digit percentage decline, to a low double-digit percentage decline,” Qualcomm wrote.

The company said that there had been a “rapid deterioration in demand” and “easing of supply constraints” in the semiconductor industry which means that chipmakers have far too much inventory and that Qualcomm’s largest customers are having to draw down their inventory.

This will hit Samsung and Apple, which use Qualcomm chips in their smartphones, and can't shift enough phones. Samsung at the time had 50 million smartphones in stock in June and Apple decided not to increase production of its new iPhone 14 lineup. And Apple’s iPhone revenue for the previous quarter was below estimates, as users spurned its iPhone 14 lineup as it would a rabid dog.

Qualcomm ’s updated guidance seems to indicate that sluggish phone sales could continue through the critical holiday sales season. It said that there’s “roughly 8-10 weeks of elevated inventory,” and the issue “may take a couple of quarters to work itself through.”

Qualcomm’s stock is down more than six per cent as shareholders heard the news.