Qualcomm CEO Cristiano Amon has told Reuters that his company expects its Apple revenue to decline faster than it had previously anticipated. Amon’s disclosure came in an interview following the company’s third fiscal quarter 2026 earnings call.
Amon blames supply constraints, which will reduce the share of Qualcomm components used in the next iPhone launch to well below its earlier 20% estimate. Qualcomm expects Apple revenue to start to slip in the fourth quarter.
Qualcomm is raising its prices starting September 1 to improve its margin because of increasing costs across the supply chain. Qualcomm expects its fiscal 2027 chip sales to be from categories other than smartphones. It expects that growth in its data center business will help replace the Apple-related revenue it expects to lose.
Apple is reportedly making moves to transition its devices to using more of its homegrown chips, starting with the iPhone 18 lineup. The Cupertino firm is developing its own modem chips, and is working on a C2 modem chip that reportedly delivers faster speeds and better power efficiency than Qualcomm’s modems.
Apple and Qualcomm’s patent licensing agreement lasts through March 2027, and depending on whether or not its own modem chips are ready for prime time, Apple will either extend the agreement again or drop Qualcomm and use its own modem chips in its devices.