Qualcomm expects its Apple revenue to decline faster than it previously anticipated, Qualcomm CEO Cristiano Amon told Reuters in an interview following the company's earnings call for the third fiscal quarter of 2026.
Amon chalked up the loss to supply constraints, which will reduce the share of Qualcomm components used in the next iPhone launch well below its earlier 20 percent estimate. Qualcomm expects the drop in Apple revenue to start in the fourth quarter.
Qualcomm is raising its prices starting September 1 to improve its margin because of increasing costs across the supply chain. "We're just passing through big cost increases that we have," said Amon.
In fiscal 2027, Qualcomm is expecting most of its chip sales to come from categories other than smartphones, and growth in its data center business will replace the Apple-related revenue it collected in fiscal 2026.
Apple developed its own modem chips, which have been used in the iPhone 16e, iPhone 17e, and iPhone Air. Rumors suggest Apple could transition to using more of its own chips starting with the iPhone 18 lineup. Apple is working on a C2 modem chip rumored to deliver faster speeds and better power efficiency than Qualcomm modems.
Apple and Qualcomm have a patent licensing agreement that lasts through March 2027, and it is not clear if Apple will extend it again or move to using its own modem chips across its entire product lineup.
