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Qualcomm Expects Apple Modem Revenue to Drop Faster Than Expected

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.

Apple 5G Modem Feature

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.

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Top Rated Comments

13 weeks ago

I really don’t understand the rumors that say Apple is going to use Qualcomm in their domestic-model iPhones and C2 internationally… could someone shine a light on that beyond “a rumor said,” because it makes no sense. Maybe I’m missing something?
Apple C modems currently are only Sub-6 and have no mmWave capabilities. Countries outside of the US have not adopted mmWave infrastructure. It’s no point to use Qualcomm model outside the US. Why pay fees for a technology people have no access to.
Score: 11 Votes (Like | Disagree)
HQuest Avatar
13 weeks ago

Would not surprise me if Apple went all in on its own modems. That is in keeping with their philosophy of controlling development on their timeline, much like they do with ARM chips.
More than just development on their timeline, controlling the integration with the remaining device and software to do what they want versus what a manufacturer offers.
Score: 10 Votes (Like | Disagree)
jlc1978 Avatar
13 weeks ago
Would not surprise me if Apple went all in on its own modems. That is in keeping with their philosophy of controlling development on their timeline, much like they do with ARM chips.
Score: 9 Votes (Like | Disagree)
jlc1978 Avatar
13 weeks ago

More than just development on their timeline, controlling the integration with the remaining device and software to do what they want versus what a manufacturer offers.
Exactly. They control the whole process and can tightly integrate the software and hardware development to produce better products.
Score: 5 Votes (Like | Disagree)
racerhomie Avatar
13 weeks ago

Even if Apple uses Gemini for some Siri AI features, that does not mean Siri is simply "Gemini with an Apple logo."

Just look at what happened with Microsoft. Copilot started by using OpenAI's GPT models, so the foundation was the same technology behind ChatGPT. But over the years, Microsoft continued improving it, adding its own systems and developing more of its own AI technologies. Today, Copilot is not just ChatGPT with a different name.

If you ask Copilot itself, it often states that its knowledge goes up to June 2024, but at the same time it can also use web information and Microsoft services, so it is not relying only on the original model.

Samsung is following a similar path. Galaxy AI uses Gemini for some features, but Samsung is also developing and integrating its own AI technologies. Nobody would say Galaxy AI is simply "Gemini with a Samsung logo."

In the AI world, it is normal to start from existing technology, use it as a foundation, and then build your own system on top of it. Apple can do the same: use Gemini where it makes sense, while continuing to develop its own AI with its own models and technologies.
Plus Apple distilled the Gemini models and made it their own. Like Deepseek and Chinese models do with ChatGPT and Claude. It’s a different product entirely
Score: 4 Votes (Like | Disagree)
Gioser Avatar
13 weeks ago

Except when it comes to cutting-edge technology like AI 😉
Even if Apple uses Gemini for some Siri AI features, that does not mean Siri is simply "Gemini with an Apple logo."

Just look at what happened with Microsoft. Copilot started by using OpenAI's GPT models, so the foundation was the same technology behind ChatGPT. But over the years, Microsoft continued improving it, adding its own systems and developing more of its own AI technologies. Today, Copilot is not just ChatGPT with a different name.

If you ask Copilot itself, it often states that its knowledge goes up to June 2024, but at the same time it can also use web information and Microsoft services, so it is not relying only on the original model.

Samsung is following a similar path. Galaxy AI uses Gemini for some features, but Samsung is also developing and integrating its own AI technologies. Nobody would say Galaxy AI is simply "Gemini with a Samsung logo."

In the AI world, it is normal to start from existing technology, use it as a foundation, and then build your own system on top of it. Apple can do the same: use Gemini where it makes sense, while continuing to develop its own AI with its own models and technologies.
Score: 4 Votes (Like | Disagree)
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