Qualcomm Forecasts Lower Quarterly Profit, Accelerated Decline in Apple Revenue
Qualcomm forecast fourth-quarter profit below analyst estimates due to a faster-than-expected decline in revenue from Apple products. The company cited supply constraints limiting its share of components for the next iPhone launch and rising costs across the supply chain as key factors affecting margins. Despite these challenges, Qualcomm signaled that growth in non-handset businesses—particularly data centers—would offset lost smartphone-related income by fiscal 2027. CEO Cristiano Amon noted plans to raise prices starting September 1 to restore historical margin levels and highlighted progress on custom chip production for hyperscale customers. CFO Akash Palkhiwala stated that growth in non-handset segments is expected to fully replace Apple revenue from the prior year. Qualcomm shares fell more than 4% after hours, while Apple stock remained flat. The company reported third-quarter results slightly above expectations but warned of ongoing margin pressures due to shifting consumer demand and pricing dynamics among Android phone manufacturers.
Topics: Apple data center expansion Qualcomm supply chain issues