Qualcomm is going to announce its Q2 2016 fiscal year earnings tomorrow after the closing bell. Let's take a look at what you can expect from their earnings. First of all, their Q1 2016 fiscal year results. They were better than expected because of increased sales of 3G/4G devices. “We signed several new license agreements in China and are on track with our cost reduction initiatives. Design traction for our new Snapdragon 820 processor continues to be strong, and we expect improving trends in our chipset business in the second half of fiscal 2016.” That's what Steve Mollenkopf told in the press-release. Sounds like Qualcomm takes the best from its international expansion. But as we can see the year-over-year change is still negative. In order to remind, QCOM revenue dropped because of a slowdown in Apple's and Samsung's sales. In January Apple announced that iPhone sales grew at the slowest pace since 2007. I think that the new iPhone se could break up this slowdown. This new version of old iPhone is still out of stock and I assume that Apple has a very high demand on it. That's why QCOM could benefit from it this year. Qualcomm's Q2 outlook isn't as positive though: The company expects a decrease in revenue by as much as 29% (it could be really really bad), while their diluted EPS could go higher. To be honest, I don't see a significant volatility here, I assume that QCOM will be able to report in line with the expectations because the range for revenue is quite significant. I'd better check their margins, such a significant decrease could hurt the margins. It didn't happen in Q1, but it's better to take a look before going into the stock.