Jan 31 Reuters Qualcomm on Wednesday forecast fiscal secondquarter profit slightly above Wall Street estimates and sales in line with market expectations but investors were concerned about the chip maker39;s Android sales in China.

The sales outlook reflects interest in new Qualcomm chips with features designed to help run chatbots, image generators and other artificialintelligence features directly on a device instead of in cloud computing data centers.

Shares seesawed in afterhours trading and were last down 0.8.

Qualcomm executives told analysts on a conference call that after a flurry of making new chips for Android phones released at the end of last year, they expect chip sales into the company39;s most important market to be flat in the current fiscal second quarter. Analysts said this indicated Qualcomm is losing market share to rivals in China.

Qualcomm predicted sales and adjusted profit with a midpoint of 9.30 billion and 2.30 per share for the current fiscal second quarter ending in March. The outlook compares with analyst estimates of 9.30 billion and 2.25 per share, according to data from LSEG.

In addition to the results, the company said on Wednesday it has reached a chip supply deal with Samsung to supply chips globally for its topend Galaxy S24 model. But that deal does not cover all of Samsung39;s newest models, some of which will use Samsung39;s own chips, a reversal from the previous generation of phone where the South Korean electronics giant used…