Smartphone and tablet chipset sales will always make up the majority of Qualcomm’s business, but there are various factors that will encourage the company to fuel the flames of diversification, with one of them being that it will lose Apple as a customer in the coming years. During its earnings call, the San Diego firm revealed that it generated $10.84 billion in its fiscal Q2 2025 earnings, beating expectations, with its chipset sales witnessing a decent bump during this quarter. Unfortunately, Qualcomm’s current momentum will not always be maintained, which is why, during the announcement, the company stated that it will maintain its focus on dipping its hands in more sectors.
Chipset business sales increased 12 percent annually, but other than Apple, Qualcomm is set to face challenges from Chinese companies, who intend to carve out their own path
Net income increased to $2.81 billion during this period, with Qualcomm’s profit getting a solid bump from the $2.33 billion it made during the same quarter a year ago. One can conclude that its Snapdragon 8 Elite was a hit with customers, including Samsung, and the company will want to maintain this dominance when the Snapdragon 8 Elite Gen 2 is rumored to launch in September later this year. Unfortunately, rising wafer costs mean that it will become costly for the chipset maker to continue pushing flagship releases, as it will mean that its phone partners have to absorb the high price.
Also, with Apple’s 5G modem licensing agreement with Qualcomm set to expire in 2027, and the iPhone maker’s in-house 5G baseband chip already powering the iPhone 16e, there is the likelihood that the firm will stop receiving orders in the near future, cutting off a highly lucrative revenue stream. Additionally, with Huawei dominating the Chinese market and continuing to churn out Kirin SoCs and Xiaomi rumored to introduce its custom chipset next month, Qualcomm should be losing sleep over potentially dwindling revenue in the next few years.
Fortunately, CEO Cristiano Amon mentioned during the earnings call that the company is focused on diversification, with its automotive business having grown 59 percent annually, and its IoT sector witnessing a 27 percent revenue increase. Furthermore, we should see more powerful chipsets powering a host of Windows laptops next year, followed by Meta’s headsets. In short, Qualcomm has already prepared for the worst, but can it progress fast enough for its other businesses to offset the loss in future revenue? It appears that only time can answer this question.
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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