Qualcomm’s facing a rough ride for 2015. In its latest quarterly earnings call, the company announced that it doesn’t expect to perform as well financially this year as it previously thought it would.
The adjusted outlook wasn’t too severe, however. Qualcomm only expects to make somewhere between $26 billion to $28 billion, down from the $26.8 billion to $28.8 billion the company expected before.
Qualcomm cited increased concerns over its Chinese business plans, as well as the fact that one of its major customers recently dropped the Snapdragon 810 chip from an upcoming flagship device. Qualcomm won’t outright name the phone maker that turned down the Snapdragon 810, but rumors point to Samsung as the culprit.
The increasingly competitive Chinese market won’t help Qualcomm much, either. Apple’s ione is killing it overseas, Chinese OEMs like novo are going with cheaper processors from lesser-known companies like Tek in an effort to control device costs. Qualcomm is also still under investigation by the China National Developer Reform Commission for overcharging its clients on patent fees.
The story behind the story: The mobile market is becoming increasingly competitive. Qualcomm’s enjoyed a plum position in the Android world—currently all the major flagship phones in the U.S. use its chips. But if Qualcomm loses Samsung as a customer, that blow could affect its relationships with other manufacturers. This could be the perfect opportunity for companies like Nvidia Intel—both eager to horn in on Qualcomm’s business—to appeal to those in search of something different. It seems unlikely that Qualcomm will be able to hold its own through the end of the year.