Qualcomm Shares Drop as Apple Revenue Fades

Qualcomm shares fell more than 6% in extended trading on Wednesday following a 26% drop in fourth-quarter revenue from its smartphone chip unit, which fell to $5.14 billion. The decline resulted from a 14-year low in global smartphone demand and a rapid reduction in sales to Apple as the iPhone maker transitions to its own modem chips.

Cristiano Amon, CEO of Qualcomm, stated that the company's fiscal 2027 forecast now excludes Apple revenue entirely. To offset this loss, Amon expects the non-handset business to grow by 60% year-over-year. Despite the handset unit's miss, Qualcomm reported overall adjusted fourth-quarter sales of $10.44 billion, which beat Wall Street estimates.

Qualcomm is diversifying its portfolio by expanding into AI and infrastructure. The company recently entered a September agreement allowing Amazon to purchase up to $60 billion in AI chips and data-center products. Additionally, Qualcomm signed a multi-year 5G deal to supply the Starlink Mobile network for Space Exploration Technologies Corp. starting in 2027.