Qualcomm: Apple’s In-House Modems Pressure Handset Revenue, AI Data Centers Next in Line
Qualcomm says Apple’s move to in‑house iPhone modems will accelerate a decline in its handset revenue, starting in fiscal Q4, after Apple’s modem share fell below earlier estimates. Apple has rolled out its own modem across recent iPhones, reducing Qualcomm’s exposure. Qualcomm expects non‑handset growth—especially AI data centers and automotive chips—to offset this, aiming for $5B in AI data center revenue by 2027 and $15B by 2029, while also raising prices from Sept. 1 to cover higher manufacturing costs. In Q3, handset revenue was $5.09B, down 20% YoY, with Q4 earnings forecast below expectations.
