Apple‘s move away from Qualcomm is happening faster than expected. The chipmaker now believes it will earn less from Apple sooner than it originally predicted, as the iPhone maker continues switching to its own in-house modem chips.
According to Qualcomm CEO Cristiano Amon, the company’s Apple-related revenue will begin declining in the fourth quarter of fiscal 2026. Speaking to Reuters after Qualcomm’s latest earnings call, Amon said supply constraints will reduce Qualcomm’s share of components in Apple’s next iPhone lineup to well below the company’s earlier estimate of 20%.
At the same time, Qualcomm announced that it will increase prices starting September 1 to offset rising supply chain costs.
“We’re just passing through big cost increases that we have,” Amon said.
Despite losing business from Apple, Qualcomm says it isn’t relying on smartphones alone for future growth. By fiscal 2027, the company expects most of its chip revenue to come from markets outside smartphones, with its growing data center business helping make up for the Apple revenue it will lose.
Apple has been developing its own modem chips for several years. So far, the company’s in-house modems have been used in the iPhone 16e, iPhone 17e, and iPhone Air, reducing its dependence on Qualcomm.
Rumors also suggest Apple could expand the use of its own modem across the upcoming iPhone 18 lineup. The company is reportedly working on a next-generation C2 modem, which is expected to offer faster speeds and better power efficiency than Qualcomm’s current solutions.
Although Apple is gradually moving away from Qualcomm’s hardware, the two companies still have a patent licensing agreement that runs until March 2027. It’s still unclear whether Apple will renew that agreement or fully transition to its own modem chips across future devices.
For now, Qualcomm appears ready for the shift. While Apple remains an important customer today, the company is betting that growth in AI, data centers, and other businesses will help fill the gap as Apple’s in-house modem strategy continues to expand.