Smartphone chip manufacturer Qualcomm Inc. issued a subdued revenue forecast for the current quarter, raising concerns that rising prices due to memory chip shortages could dampen handset demand. Qualcomm's stock plummeted in after-hours trading.

Qualcomm disclosed in its earnings report released Wednesday after the market close that it expects second-quarter revenue to reach between $10.2 billion and $11.0 billion. Adjusted earnings per share are anticipated to be around $2.55. Data compiled by Bloomberg showed analysts' average estimates were for revenue of $11.2 billion and earnings per share of $2.89.

The company stated that while demand for high-end phones remains, production volumes for some customers, particularly in China, will fall short of expectations due to tight memory chip supply and significant price increases. Qualcomm's Chief Executive Officer, Cristiano Amon, is spearheading a corporate transformation to diversify the business by increasing chip sales for automobiles, personal computers, and data centers. However, the scale of these new ventures is still insufficient to offset the slowdown in the mobile chip market.

Amon remarked in a statement, "Although our near-term handset chip business outlook is impacted by industry-wide memory supply constraints, we remain encouraged by the demand for premium smartphones."

Qualcomm's stock closed at $148.89 in New York on Wednesday, subsequently dropping approximately 9% in after-hours trading. The stock has declined 13% year-to-date.

For the first quarter ended December 28th, Qualcomm reported adjusted earnings per share of $2.78; quarterly revenue increased by 5% to approximately $12.3 billion. Analysts had projected earnings per share of $3.41 on revenue of $12.2 billion.