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Qualcomm Braces for Apple's In-House Modem Shift, Tariff Risks
31 Jul
Summary
- Qualcomm warns of revenue hit from Apple's move to in-house modems
- Tariff threats from Trump pose potential supply chain disruptions
- Qualcomm expands focus to data centers, PCs, and augmented reality
As of July 31, 2025, Qualcomm, the leading supplier of smartphone modem chips, is bracing for a significant impact on its revenue due to the looming loss of Apple as its biggest customer. The San Diego-based chip maker has warned investors that Apple's decision to transition to in-house modems, starting with the launch of the iPhone 16e in February, will hit its future chip sales.
Adding to Qualcomm's woes, the renewed tariff threats from U.S. President Donald Trump on semiconductors have emerged as a potential risk, potentially disrupting supply chains and hurting the company's handset revenue. While smartphones and semiconductor chips have so far been exempt from these levies, Trump recently warned he would "soon announce tariffs on semiconductors," raising concerns of sector-specific duties.
To offset these challenges, Qualcomm has intensified its focus on diversifying into other sectors, such as data centers and personal computers. The company is also expanding its presence in the augmented reality market, with CEO Cristiano Amon stating that Qualcomm now supports 19 AR designs, including Meta's Ray-Ban smart glasses, and expects this number to grow.
