Qualcomm’s Future Prospects Amid Chipset Market Changes
Qualcomm’s positive outlook was met with concern as Apple’s potential departure as a modem customer cast a shadow on the company’s forecast and stock value. The San Diego-based technology giant leads in modem chip supply for smartphones globally.
Despite the looming loss of Apple, Qualcomm’s chip revenue from other clients has seen a significant increase this fiscal year. Analysts attribute this growth to higher selling prices driven by flagship Android releases rather than a broad volume recovery.
Contrary to Qualcomm’s dominance, Taiwan’s MediaTek has emerged as the top smartphone chipset provider due to its focus on mid-range devices and market expansions, especially in countries like India.
Qualcomm warned about the impact of Apple’s decision to switch to in-house modem chips on their revenue. The company’s latest financial forecast for the September quarter anticipates a revenue range of $10.3 billion to $11.1 billion.
Despite global economic uncertainties like tariffs, Qualcomm’s CEO is optimistic about expanding business opportunities, particularly in supplying chips for augmented-reality glasses like Meta Ray-Bans.
Looking ahead, Qualcomm projects a mid-range chip segment sales figure of $9.3 billion for the fiscal fourth quarter. The company’s recent financial performance surpassed expectations, reflecting a positive outlook for the future.