Qualcomm Posts Revenue Gain Amid Market Share Loss to MediaTek

Qualcomm's strong second-quarter revenue in 2025, driven primarily by its Snapdragon chips, was boosted by higher prices rather than increased sales volume, raising concerns about sustainable growth amid rising competition. Despite losing the Apple iPhone 16e modem contract to Apple's in-house chip, Qualcomm's chip sales excluding Apple rose over 15%, largely due to premium Android smartphone launches, not broad volume gains. MediaTek has overtaken Qualcomm as the global smartphone chipset leader by sales volume, leveraging competitive pricing and technological advancements like the upcoming 2nm chips. Qualcomm forecasts third-quarter revenue between $10.3 billion and $11.1 billion, slightly above analyst expectations, signaling optimism despite the competitive and tariff-related challenges. The company remains cautious about the potential impact of U.S. tariff policies on semiconductors, although smartphones and chips currently enjoy exemptions. To maintain growth, Qualcomm needs to increase chip sales in volume rather than rely on price hikes, especially as rivals intensify competition in the chipset market.