ON Wnesday Qualcomm reported quarterly results that topped expectations, while disappointing investors with a reduced outlook for the current quarter due to the global memory shortage. Shares in the chipmaker fell over 9% in after-hours trading following this announcement. Qualcomm posted Q1 earnings of $3.50 per share, versus $3.41 expected, with revenue of $12.25bn, slightly above consensus.

For the current quarter, the group expects revenue of between $10.2bn and $11bn and earnings of $2.45 to $2.65 per share, below market expectations. Qualcomm said the revision reflects mounting pressure on memory supply, a direct consequence of strong demand from data centers at the expense of consumer devices. CEO Cristiano Amon warned that memory was becoming a limiting factor for the mobile market, prompting manufacturers to prioritize high-end models better able to absorb higher costs.

Despite that backdrop, smartphone chip sales rose 3% y-o-y to $7.82bn, while total revenue increased 5%. Diversification businesses showed stronger growth: the Internet of Things segment gained 9%, and the fast-growing automotive and robotics division jumped 15%. Net profit came in at $3bn, slightly down from a year earlier. The higher-margin technology licensing division generated $1.59bn in revenue over the period.