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Qualcomm Expects Apple Modem Revenue to Drop Faster Than Expected
Qualcomm anticipates a sharper decline in revenue from Apple than previously thought, largely due to supply chain issues that will limit the incorporation of Qualcomm components in Apple's upcoming iPhone models. The company plans to raise prices starting in September to offset increasing supply chain costs. Future growth is expected to come more from data center operations rather than smartphones, reflecting a strategic pivot as Apple moves towards manufacturing its modem chips.
MonitorConfidence: MediumShort term horizonSupply chain risk: High
Published 30 Jul 2026, 00:45 UTC1 min read
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Summary
TL;DR
- Qualcomm expects a decline in Apple modem revenue faster than expected.
- CEO Cristiano Amon attributes revenue drop to supply constraints.
- The share of Qualcomm components will be below the anticipated 20% in the next iPhone.
- Qualcomm plans to raise prices on September 1 to improve margins.
- Apple may transition to using its own modem chips more extensively in future iPhones.
Interesting facts
- Qualcomm's patent licensing agreement with Apple extends to March 2027.
- Apple's C2 modem chip is rumored to offer better performance than Qualcomm's products.