Qualcomm Faces Market Tremors Amid Apple Breakup and Tariff Threats
Qualcomm's shares declined nearly 5% with potential revenue loss looming due to Apple transitioning to in-house modems. Additionally, potential semiconductor tariffs, pushed by Trump's policy, add risks. Despite this, Qualcomm's non-Apple chip sales have increased and expansion in augmented reality offers new growth avenues.
Qualcomm shares dropped by nearly 5% in pre-market trading, as investors faced the prospect of losing Apple as the San Diego-based firm's top modem customer. The chip supplier's revenue is anticipated to be affected with Apple's plans to use its own modems starting with the iPhone 16e's launch next February.
In response to these challenges, Qualcomm is focusing on expanding its presence in sectors like data centers and personal computers. Additionally, U.S. President Donald Trump's tariff policies on semiconductors threaten to disrupt supply chains, posing further risks to Qualcomm's handset revenue.
Despite current exemptions on smartphones and chips, potential tariffs could impact Qualcomm's revenues. Meanwhile, Qualcomm's chip sales to non-Apple clients have surged by more than 15% this fiscal year, bolstered by strong partnerships with companies like Samsung and Xiaomi, and growing deployments in augmented reality technology.
(With inputs from agencies.)
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- augmented reality
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