Qualcomm Diversifies Beyond Declining Apple Modem Business

Qualcomm is preparing for a future with significantly reduced reliance on Apple, as the iPhone maker transitions to its own in-house C1 modem, ending their long-term modem supply relationship by 2027. Qualcomm CEO Cristiano Amon downplayed the drama around losing Apple’s modem business, emphasizing the company’s strategic shift toward growth in other areas such as Android devices, automotive, IoT, and AI-powered data center chips. Despite the expected decline in revenue from Apple’s modem business, estimated between $5.7 billion and $5.9 billion annually, Qualcomm aims to expand its presence in connected cars and IoT, targeting growth from $8.3 billion in 2024 to $22 billion by 2030. The company is also re-entering the AI data center market to compete with major players like Nvidia, AMD, Intel, and ARM. Qualcomm's stock has been trading at a discount compared to the S&P 500 for several years, reflecting investor skepticism until the company makes significant progress in diversifying beyond smartphones. Overall, Qualcomm is positioning itself for long-term growth by reducing dependence on Apple and capitalizing on emerging technology markets.