Qualcomm Shocker: Apple’s Revenue Plummets Faster Than Expected!

Qualcomm has projected a faster-than-expected decline in its revenue from Apple starting from the next quarter, the company disclosed. It anticipates that this drop will be partially offset by increased operations in the data center sector, according to a report from Reuters. Qualcomm mentioned that “supply constraints” would significantly reduce its share of components for the upcoming iPhone to well below the initially estimated 20%. CEO Cristiano Amon also declared that price increases would be implemented from September 1st. “We are merely passing on the significant cost increases we are facing,” he stated, noting that the gross margin would temporarily decrease.

Ripple Effects Beyond Modems

Qualcomm supplies Apple with various components, which extend beyond the modem used in the iPhone. However, the modem is the most expensive component supplied by Qualcomm, which Apple may replace starting in September with the internally designed Apple C2 modem in the iPhone 18 Pro. This change is expected at least for models sold outside the United States, as American models might continue to use Qualcomm’s Snapdragon X80 modem, which supports 5G mmWave technology.