Qualcomm says supply constraints are shrinking its Apple business faster than expected

Qualcomm faces accelerating revenue decline from Apple as supply constraints reduce its iPhone modem component share below the previously estimated 20%, with steeper losses beginning in Q4. The company is strategically pivoting away from smartphone dependency by aggressively expanding its data center business, targeting $5 billion in revenue by fiscal 2027 to offset Apple's transition to proprietary modem technology. This shift signals a critical restructuring in the semiconductor supply chain and highlights the strategic risks of customer concentration, while maintaining near-term revenue stability through patent licensing agreements extending through March 2027.