Qualcomm, one of many main suppliers of chips and modems in telephones, is predicting that telephone gross sales shall be down far more than anticipated in 2022 because of the unsure financial atmosphere, in keeping with the corporate’s newest earnings launch printed Wednesday.

“Given the uncertainty attributable to the macroeconomic atmosphere, we’re updating our steerage for calendar yr 2022 3G/4G/5G handset volumes from a year-over-year mid-single-digit share decline, to a low double-digit share decline,” Qualcomm wrote. The corporate additionally says that “speedy deterioration in demand” and “easing of provide constraints” within the semiconductor trade have led to elevated stock and that Qualcomm’s largest prospects are having to attract down their stock.

The corporate’s up to date steerage appears to point that sluggish telephone gross sales may proceed via the essential vacation gross sales season. In a slide deck, Qualcomm mentioned there’s “roughly 8-10 weeks of elevated stock,” and the corporate expects that problem “might take a few quarters to work itself via.” Qualcomm’s inventory is down greater than 6 % in after-hours buying and selling as of this writing.