Qualcomm's iPhone Business Shrinks Faster Than Expected, Challenging Split Modem Theory
Qualcomm's business with Apple is shrinking faster than planned, with the chipmaker set to supply less than 20% of components in the next iPhone launch. This development makes the rumored split modem setup on the iPhone 18 Pro Max harder to believe, which is significant for those shopping for the best iPhones this fall.
Qualcomm's Apple Revenue Expected to Fall More Quickly
Qualcomm President and CEO Cristiano Amon told Reuters in an interview after the company's third fiscal quarter earnings call that revenue from Apple products will decline more rapidly starting in the fourth quarter. He attributed this to supply availability rather than any action by Apple.
Qualcomm's phone chip business brought in $5.09 billion last quarter, down 20% from the same time a year ago. The company also warned that the current quarter will be softer still.
Qualcomm's Shift to Data Centers
Amon pointed to where Qualcomm is heading instead, projecting $5 billion in data center revenue by fiscal 2027. The company has been diversifying its business beyond smartphones and is increasingly focused on providing chips for data centers and other markets.
This development raises questions about the rumored split modem setup on the iPhone 18 Pro Max, which was based on a leaked bill of materials suggesting Apple would dual-source modems for the device, with its own C2 chip in most markets and a Qualcomm Snapdragon X80 plus an SDR875 transceiver in US models to keep mmWave 5G support.
However, with Qualcomm's component share expected to be well below 20%, it's challenging to see how the Pro and Pro Max could still be carrying Qualcomm modems. This could mean that Apple's C2 modem could potentially be used across the entire Pro lineup, which would have implications for battery life, mmWave 5G support, and privacy features.
For those considering the best iPhones this fall, this development could impact their purchasing decisions. While the iPhone 18 Pro Max is expected to be a high-end device, the reduced reliance on Qualcomm could mean that Apple's own modem technology takes center stage.