Qualcomm shares slide as Apple modem shift, tariffs raise growth concerns
The San Diego-based chip supplier warned investors that Apple's move to depend on in-house modems, starting with the February launch of the iPhone 16e, would hit future chip revenue.
Qualcomm has intensified its focus on sectors such as data centers and personal computers.
Adding to the pressure, U.S. President Donald Trump's renewed tariff threats on semiconductors have emerged as a risk, potentially disrupting supply chains and hurting Qualcomm's handset revenue, analysts said.
While smartphones and semiconductor chips have so far been exempt from these levies, Trump recently warned he would "soon announce tariffs on semiconductors," raising concerns of sector-specific duties.
CFO Akash Palkhiwala told Reuters that the company hasn't seen early chip orders yet, suggesting customers aren't rushing to beat possible tariffs.
"Tariffs could trim mid-single digits off handset revenue, but Chinese OEMs (original equipment manufacturers) still view (Qualcomm's mobile phone chip) Snapdragon as essential for global 5G and AI-on-device marketing," said Michael Ashley Schulman, CIO at Running Point Capital.
Qualcomm, the world's largest supplier of modem chips and seen as a bellwether for smartphones, said chip sales to non-Apple customers have risen more than 15% this fiscal year, driven by premium Android launches.
"We see durable share at Samsung and an extended collaboration with Xiaomi as key support in the handset segment as Apple chipset revenue comes out of the model," TD Cowen analysts said.
Qualcomm is also expanding in augmented reality.
CEO Cristiano Amon said the company now supports 19 augmented reality designs including META's Ray-Ban smart glasses and expects that number to grow.
The company's 12-month forward price-to-earnings ratio is 13.36, trailing Nvidia's 34.91, Intel's 47.14 and Advanced Micro Devices 35.33, according to data compiled by LSEG.
(Reporting by Rashika Singh in Bengaluru; Editing by Harikrishnan Nair)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
Zelenskiy says Russia seems more inclined now to a ceasefire
FILE PHOTO: Ukrainian President Volodymyr Zelenskiy speaks during a press conference on the first day of the two-day Ukraine Recovery Conference (URC2025), on plans for the reconstruction of Ukraine, in Rome, Italy, July 10, 2025. REUTERS/Guglielmo Mangiapane/File Photo KYIV (Reuters) -Ukrainian President Volodymyr Zelenskiy said on Wednesday that Russia seemed "more inclined" to a ceasefire, but details of a potential deal are of great significance and neither Ukraine nor the U.S. should be deceived by Moscow. President Donald Trump said his special envoy Steve Witkoff's meeting with Russian leader Vladimir Putin on Wednesday delivered "great progress," but Trump gave no specifics. Following the meeting, Zelenskiy had a call with Trump, joined by European allies. "Ukraine will definitely defend its independence. We all need a lasting and reliable peace. Russia must end the war that it itself started," Zelenskiy said on X. Trump, who has signalled frustration with Putin in recent weeks and has given the Russian president until Friday to make peace with Ukraine or face tougher sanctions, hailed Witkoff's visit as highly productive. But a White House official said the secondary sanctions that Trump has threatened against countries doing business with Russia were still expected to be implemented on Friday. An executive order introducing additional 25% tariffs on India for Russian oil imports was signed on Wednesday. "The pressure on (Russia) works. But the main thing is that they do not deceive us in the details – neither us nor the U.S.," Zelenskiy said. Ukraine has repeatedly called for an immediate and unconditional ceasefire. Russia, which now controls about a fifth of Ukrainian territory and proceeds with its advances on the eastern front, rejected the idea. National security advisers from Ukraine and allied nations were to meet soon to work out a "joint stance", Zelenskiy added. (Reporting by Yuliia Dysa; Editing by Leslie Adler)
The Star
4 hours ago
- The Star
Tennis-U.S. Open announces record $90 million prize money
NEW YORK (Reuters) -The U.S. Open announced $90 million in prize money will be on offer at this year's final major, marking the largest purse in tennis history, up 20% from 2024. Top players in the ATP and WTA called for more equitable distribution of revenue at the four Grand Slams this year, as those at the top of the game are able to benefit from increased prize money while players at the lower levels often struggle. The U.S. Open prize pool is up from $75 million in 2024, the previous highest-ever purse. Men's and women's singles winners will earn $5 million each, up from $3.6 million last year. The tournament will also see double-digit percentage increases across all rounds in all events, after "years of a strategic focus on redistribution to the early rounds and qualifying tournament," organisers said. Singles action at the U.S. Open has been expanded to 15 days, amid booming attendance, and will take place from August 24 to September 7. A new format in the mixed doubles is being introduced this year, with the event featuring many big-name singles players as it will be taking place over two days in the week before the main competition kicks off at Flushing Meadows. U.S. Open attendance topped one million fans for the first time in 2024. (Reporting by Amy Tennery in New York, editing by Pritha Sarkar)
The Star
4 hours ago
- The Star
China, Zimbabwe ink cooperation deal, food assistance package
HARARE, Aug. 6 (Xinhua) -- China and Zimbabwe on Wednesday signed an agreement on economic and technical cooperation and exchange of letters for a new batch of food assistance to boost Zimbabwe's socio-economic development and food security. Zimbabwean President Emmerson Mnangagwa presided over the signing ceremony at the State House, where Zimbabwean Minister of Finance and Economic Development Mthuli Ncube thanked China for its continued support to various economic sectors in Zimbabwe. He said that the previous economic and technical cooperation agreement signed between the two countries in 2020 has supported, among other projects, the drilling of boreholes across the country and the implementation of the Juncao technology assistance project that helps Zimbabwean farmers to cultivate hybrid grass rich in protein. "The government of Zimbabwe sincerely appreciates and acknowledges the emergency food assistance continuously received from China," Ncube said. "Indeed, China has demonstrated that they are our all-weather friend through the invaluable support they have consistently rendered to the people of Zimbabwe." For his part, Chinese Ambassador to Zimbabwe Zhou Ding said the agreements were a testimony of the resilient ties between the two countries and the affirmation of China's unwavering solidarity with Zimbabwe. He said the economic and technical cooperation agreement, as well as the food assistance, were part of the 17 cooperation agreements signed between China and Zimbabwe during Mnangagwa's state visit to China last year. "Time and again, we have proven that we are bound by a shared future, standing side by side through every trial. We cherish this profound and enduring friendship, and will continue to stand together in the face of all challenges," Zhou said. The Chinese ambassador noted that the comprehensive strategic partnership of cooperation between the two countries has flourished across all Zimbabwean sectors, bringing tangible benefits to both nations and setting a shining example for South-South cooperation. China remains firmly committed to supporting Zimbabwe in realizing its Vision 2030 and advancing its socio-economic transformation, Zhou added.
