The smartphone chipset business for Qualcomm is like the iPhone for Apple, bringing in the lion’s share of the revenue for each company. When we reported the San Diego firm’s Q2 2025 earnings, it was not surprising to learn that 61 percent of its quarterly revenue came from the Snapdragon brand, which raked in $6.33 billion. Of course, it was obvious that Qualcomm would suffer from an earnings loss because Apple is carving out its own path with its in-house C1 5G modem found in the iPhone 16e.
However, the company’s CEO, Christiano Amon, has said that the chipset business revenue has already grown 15 percent this year, with Apple out of the picture, which is excellent news. Then again, one analyst has commented that the increased revenue is not necessarily because Qualcomm has been pushing out more volume, and that could prove to be a terrible strategy in the coming quarters.
Current earnings are benefiting from the premium Qualcomm is charging for chipsets like the Snapdragon 8 Elite, but MediaTek is already eating into its rival’s market share
The total revenue for the second quarter was $10.37 billion, with a significant chunk coming from Snapdragon 8 Elite sales. Prior to the official announcement last year, a Qualcomm executive mentioned that this SoC would be more expensive than the Snapdragon 8 Gen 3 because the company transitioned to its in-house Oryon cores, and while that turned out to be terrible for Qualcomm’s phone partners, the latter benefitted from the launch.
As reported by Reuters, Third Bridge analyst William McGonigle has commented that the 15 percent increase in chipset revenue is not because Qualcomm pushed a ton of volume for this quarter, but due to the increased price of its silicon. Smartphone makers who have launched their top-tier offerings have always preferred the Snapdragon 8 Elite, but MediaTek is slowly gaining tremendous ground for partners who want a ‘flagship’ solution, but at a more competitive price.
MediaTek has already surpassed Qualcomm to become the largest smartphone chipset provider in the world, and during its Q2 2025 earnings call, the company mentioned that its Dimensity 9500 is already in higher demand compared to the Dimensity 9400 and Dimensity 9400+. The Taiwanese fabless semiconductor manufacturer also said that it will begin 2nm tape-out in the fourth quarter of this year, which should make Qualcomm nervous, as its rival is keeping pace in using the same lithography in 2026.
The Snapdragon 8 Elite Gen 2, which will succeed the Snapdragon 8 Elite in September, is rumored to be only slightly more expensive than its immediate predecessor, meaning that Qualcomm has to push even more volume if it hopes to beat this quarter’s revenue.
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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