Qualcomm shares dropped after the company flagged two pressures on its sales outlook. The chipmaker is losing Apple as a major customer while high memory costs weigh on smartphone demand.
Apple has been developing its own modem chips to replace Qualcomm components in future iPhones. The shift will gradually reduce a significant revenue stream for Qualcomm.
Rising memory prices are pushing up the cost of building smartphones. That increase could soften consumer demand and hurt sales across the handset market.
Qualcomm supplies modems and other chips used in many smartphones worldwide. A weaker handset market directly affects how many components the company sells.
The loss of Apple’s business adds to concerns about Qualcomm’s long-term revenue stability. Investors are watching how quickly the company can offset that decline with other customers.
Memory costs have climbed as manufacturers prioritize production for data centers and AI hardware. Smartphone makers now pay more for the same components, squeezing margins across the industry.
Qualcomm has not yet detailed how it plans to counter both pressures. The company’s next earnings report may offer more clarity on the financial impact.
