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. 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. Popular StoriesApple Will 'Watch Everything Burn' When AI Bubble Bursts - Ed ZitronMemory prices have doubled, Macs and iPads have gone up, and iPhones are expected to follow. Ed Zitron – who writes the Where's Your Ed At newsletter, hosts the Better Offline podcast, and has been described by Politico as the AI boom's most "acerbic gadfly" – has spent years arguing the buildout driving those costs will never pay for itself. We asked him what happens to Apple if he's...iPhone 18 Pro Launching in Two Months With These 12 New FeaturesIt is now late July, and that means the iPhone 18 Pro and iPhone 18 Pro Max are less than two months away. The devices are expected to look similar to the iPhone 17 Pro and iPhone 17 Pro Max, but there will still be many year-over-year changes, with rumored features including a smaller Dynamic Island, 5G via satellite, and more. Apple is expected to unveil the iPhone 18 Pro, iPhone 18 Pro...Here's What the 'iPhone 20' is Expected to Look LikeApple's 20th anniversary iPhone is expected to arrive in the fall of 2027 with the most significant design overhaul the device has seen since the iPhone X. In many ways, the device is expected to repeat the story of the iPhone X, which marked the device's 10th anniversary in 2017 by dropping the Home button and introducing an edge-to-edge display. The 2027 model is rumored to overhaul the...