Qualcomm expects revenue tied to Apple’s modem components to fall faster than it previously anticipated, Qualcomm CEO Cristiano Amon said in an interview with Reuters after the company’s third fiscal-quarter earnings call. Amon links the faster decline to supply constraints that limit how quickly Qualcomm expects its share of iPhone modem components to be used. Qualcomm previously projected Apple would use Qualcomm components at roughly 20% for a future iPhone generation, but it now expects the share in the next iPhone launch (reported as iPhone 18) to be well below that estimate.
Qualcomm also expects the decline in Apple-related revenue to begin in the fourth quarter. To address rising costs across the supply chain, the company plans to raise prices starting September 1, and it says it is passing through increased costs.
Qualcomm anticipates that in fiscal 2027, most chip sales will come from categories other than smartphones, with growth in its data center business replacing revenue it previously generated from Apple. The broader context includes Apple’s ongoing use of its in-house C-series modem chips in recent iPhone models and a patent licensing agreement between Apple and Qualcomm that runs through March 2027, when it may be renegotiated or ended.
