WORLDTECHQualcomm warns Apple revenue drop will weigh on December quarter
Qualcomm's Chief Financial Officer, Akash Palkhiwala, has signalled that a shrinking Apple business will keep the December quarter from being the San Diego chipmaker's strongest of the year. The warning was given on the company's July 29, 2026 earnings call, and reported by Crypto Briefing.
What the company is projecting
Management projected that Apple-related revenue in the December quarter would fall by roughly half compared with the September quarter, according to the report. Qualcomm pointed to supply constraints and lost market share as the two causes.
The company had aimed to win 20% of the components in the new iPhone lineup, a target that now appears out of reach. That shortfall accelerates the expected decline from one of its most important partners.
How much Apple weighs on the business
Qualcomm estimates that Apple accounted for approximately $7.5 billion of its roughly $44 billion in fiscal 2026 revenue. The handset business was already under strain: in fiscal fourth-quarter 2026 results released on November 4, handset chip revenue fell 26% year over year to about $5.1 billion, while the adjacent segment rose 89% to approximately $2.0 billion.
Guidance still beats expectations
Despite the Apple drag, Qualcomm guided December-quarter revenue to between $10.4 billion and $11.2 billion, a range that landed slightly above consensus estimates.
Diversification beyond phones
Qualcomm expects its non-handset segments, including automotive and the Internet of Things, the category of connected devices beyond phones from industrial sensors to smart home gear, to fully offset the lost Apple revenue in fiscal 2027. Data centres are the other major bet, with a $5 billion revenue target for fiscal 2027 and an aim of $15 billion by 2029.
Open questions
- Will the non-handset segments deliver the offset Qualcomm expects in fiscal 2027?
- Can Qualcomm win back market share in Apple's iPhone lineup?