Earnings

Qualcomm stock falls more than 8 percent on outlook

Qualcomm President Derek Aberle displays a LG G Flex 2 smartphone that contains Qualcomm's Snapdragon 810 chip.
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Qualcomm stock fell more than 8 percent in after-hours trading after the company lowered its chip guidance for the second half of the year.

The company reported Q1 adjusted earnings of $1.34 per share, compared to Wall Street estimates of $1.25. Revenues for the quarter came in at $7.10 billion, beating estimates of $6.94 billion.

The technology firm said it lowered the outlook on its semiconductor in part because of a "shift in share among [original equipment manufacturers] at the premium tier. Qualcomm's Snapdragon processor has a major buyer in Samsung, and the lowered outlook may reflect Apple's share gains in the smartphone market.

Additionally, Qualcomm pointed to "expectations that our Snapdragon 810 processor will not be in the upcoming design cycle of a large customer's flagship device" in its lowered outlook. This statement may be pointing to rumors that Samsung's Galaxy S6 could potentially employ a different company's chips.

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Qualcomm CEO Steven Mollenkopf told CNBC that Apple's share gains are hurting its chip outlook more than the loss of the single device. He added that the semiconductor business has another high-end chip coming in the second half of the year.

He also said that the company's relationship with that major customer—which he did not explicitly name as Samsung—is still good overall.

Qualcomm also blamed increased competition in China for the reduced guidance.

"China continues to present significant opportunities for us, particularly with the rollout of 3G/4G LTE multimode, but also presents significant challenges, as our business practices continue to be the subject of an investigation by the China National Development and Reform Commission (NDRC)," the company wrote in its earnings release.

—CNBC's Jon Fortt contributed to this report.