Overview
- Qualcomm told Reuters after Wednesday's earnings commentary that supply constraints will cut its share of components in the next iPhone well below its prior 20 percent estimate and that Apple‑related revenue will decline more quickly starting in the fourth quarter.
- The company plans to raise chip prices effective September 1 to pass through higher supply‑chain and component costs and to protect margins.
- Qualcomm says it is replacing lost smartphone revenue with growth in its data‑center business and is targeting $5 billion in data‑center revenue by fiscal 2027.
- Apple has already deployed its in‑house C‑series modem in recent devices and industry reports say it may broaden use in upcoming iPhone models; a next‑generation 'C2' modem is reported but remains unconfirmed.
- A separate patent licensing agreement between Apple and Qualcomm remains in force through March 2027, shaping the companies' near‑term commercial and contractual interactions.