Apple is slowly moving away from Qualcomm as the company introduced its C1 5G modem for the iPhone 16e earlier this year. Fortunately, this setback has not prevented the chipset manufacturer from beating analysts’ expectations as it posted a strong $10.37 billion in revenue for the second quarter of 2025. As expected, the company’s smartphone chipset business generated the majority of the aforementioned figure, and while the San Diego firm has posted some healthy results for this period, it plans to diversify to other segments to help alleviate the financial loss it has to bear for losing Apple as a lucrative customer.
The smartphone business brought in $6.33 billion, but Qualcomm failed to beat estimates in this sector and aims to branch out to other divisions as Apple shifts to developing its custom 5G modems
The Snapdragon brand failed to beat analysts’ expectations of $6.44 billion as it brought in $6.33 billion in revenue, but with MediaTek breathing down Qualcomm’s neck by planning to take some of that market share away by introducing the Dimensity 9500 later this year, the company needs a plan where it can guarantee its growth amidst the fierce competition. Unfortunately, with Apple eventually dropping Qualcomm as a 5G modem supplier, the latter needs to diversify into other areas aggressively.
Chief Executive Christiano Amon stated during the Q2 2025 earnings call that the firm is developing silicon for Meta’s Ray-Bans smart glasses, along with making chipsets for Windows computers and Quest VR headsets. The CEO also commented that Qualcomm’s chip business has grown 15 percent this year without Apple, with the company also looking to expand into data centers so its products can be used for AI.
During the earnings call, Qualcomm mentioned that it is in discussions with a major cloud company called a hyperscaler to provide chipsets focused on artificial intelligence. However, the company would only start seeing revenues from fiscal 2028. As for automobiles, Qualcomm says that this business offers a massive growth opportunity, and in the second quarter, this segment grew 21 percent to $984 million.
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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