Qualcomm expects its Apple revenue to decline faster than expected, Qualcomm CEO Cristiano Amon said. Reuters in an interview following the company’s fiscal third quarter 2026 earnings call.
Amon attributed the loss to supply constraints, which will reduce the share of Qualcomm components used in the upcoming iPhone launch well below its previous estimate of 20%. Qualcomm expects Apple’s revenue decline to begin in the fourth quarter.
Qualcomm is raising prices starting September 1 to improve its margin due to increasing costs throughout the supply chain. “We’re just experiencing big cost increases,” Amon said.
In fiscal 2027, Qualcomm expects 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 were used in the iPhone 16e, iPhone 17e and iPhone Air. Rumors suggest that Apple may use more of its own chips starting with the iPhone 18 lineup. Apple is working on a C2 modem chip that is said to offer faster speeds and better power efficiency than Qualcomm modems.
Apple and Qualcomm have a patent licensing agreement that lasts until March 2027, and it’s unclear whether Apple will extend it again or use its own modem chips across its entire product line.
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