Memory chip shortage impacts smartphone market, Qualcomm's stock price falls.

Chip supplier Qualcomm predicted on Wednesday that second-quarter revenue and profit would be below Wall Street expectations, citing a global memory supply shortage that is expected to impact smartphone sales. The California-based Qualcomm released its financial report as the global electronics supply chain grapples with a severe shortage of memory chips, which are a key component of devices like smartphones and data centers. Following the release of the financial report, Qualcomm's stock fell 9% in after-hours trading. The company's stock has already dropped more than 11% this year, as Wall Street considers the impact of market share loss and skyrocketing memory prices. Qualcomm CEO Amon said in an interview that the reason for the entire forecasting error was a memory chip shortage faced by Qualcomm's smartphone customers. Amon stated, "I'm very happy with the company's business - I just wish we had more memory." He added, "It's basically all about the OEMs, especially in China, reducing inventory levels to match memory supply." The company expects its second-quarter revenue to be between $10.2 billion and $11 billion, while analysts' average expectation is $11.2 billion. The company also forecasts adjusted earnings per share for the quarter to be between $2.45 and $2.65, while the expected profit is $2.89.