Qualcomm smartphone chip revenue falls 26 per cent
Expensive memory chips weigh on smartphone production, while Qualcomm seeks growth in cars and data centres.
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Qualcomm’s revenue from smartphone chips fell 26 per cent to 5.14 billion dollars in the fourth quarter of its financial year. According to Reuters, the market is under pressure from high memory prices and falling demand for smartphones.
Qualcomm reported results on 4 November for the quarter that ended on 27 September. Total revenue from the QCT chip segment came to 9.015 billion dollars, 8 per cent less than a year earlier. Within that segment, handset revenue fell more sharply, from 6.961 billion to 5.137 billion dollars.
The company says its smartphone business is being affected by the broader memory shortage. Reuters reported, citing Counterpoint Research, that global smartphone shipments fell 20 per cent in the September quarter to their lowest level in fourteen years. According to Reuters, higher memory prices are partly being driven by strong demand from AI data centres.
The figures do not mean Qualcomm is shrinking everywhere. Revenue from chips for the automotive industry rose 89 per cent in the quarter to 1.99 billion dollars. Qualcomm also cites growth in internet-of-things products and expects non-handset revenue to rise by more than 60 per cent in fiscal 2027.
The shift is strategically important because Apple is increasingly using its own modem technology. In its forecast for the first fiscal quarter of 2027, Qualcomm says it is not counting on any further revenue from Apple. The company expects growth outside smartphones eventually to offset the loss of Apple.
For the coming quarter, Qualcomm forecasts total revenue of between 10.4 and 11.2 billion dollars. For the chip segment, the expectation is between 9 and 9.6 billion dollars. The company also expects 650 million dollars in data-centre revenue in the first quarter, but that is a forecast rather than realised revenue.
The development could affect manufacturers’ product mix. If memory remains expensive and scarce, manufacturers may make fewer budget smartphones or pass on higher costs. Qualcomm chief executive Cristiano Amon told Reuters that, in his view, Android sales have now reached a floor; this is a company assessment, not an independently established market trend.
Also show the region and a close-up
Both sides of the figures
▲ Bright spots
- Qualcomm’s automotive revenue rose 89 per cent in the quarter to 1.99 billion dollars.
- The company expects 650 million dollars in data-centre revenue in the coming quarter.
▼ Concerns
- Handset revenue fell 26 per cent to 5.137 billion dollars.
- Total QCT revenue fell 8 per cent and adjusted quarterly earnings fell 28 per cent.
Critical note
Reported net profit rose on a GAAP basis because of a 5.7 billion dollar tax benefit; this does not indicate that the underlying chip businesses improved by the same extent. Growth outside smartphones is also partly a forecast for future quarters.
Who notices what
- Businesses
- Smartphone manufacturers may face higher memory and chip costs and shift their product mix towards more expensive devices.
- Households
- New smartphones may become more expensive or less widely available, particularly in lower price brackets.
- Investors
- The market will weigh the contraction in handsets against Qualcomm’s expected growth in automotive chips and data centres.
Every point comes from the article’s sources and was included in the fact check.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The revenue figures, segment figures and forecasts were checked against Qualcomm’s quarterly publication. Market claims and statements by the chief executive are separately attributed to Reuters.
- confirmed Qualcomm’s handset revenue fell 26 per cent to 5.137 billion dollars. — This appears in Qualcomm’s official segment table. source
- confirmed QCT revenue fell 8 per cent to 9.015 billion dollars. — This appears in the same segment table. source
- confirmed Revenue from automotive chips rose 89 per cent to 1.99 billion dollars. — Qualcomm reports this as quarterly Automotive revenue. source
- confirmed Global smartphone shipments fell 20 per cent in the September quarter. — Reuters attributes this to Counterpoint Research. source
- confirmed According to Qualcomm, Android sales have reached a floor. — This is a statement by CEO Cristiano Amon to Reuters and is described as an assessment. source
Editor's note
The quarterly figures come from Qualcomm’s official publication. The cause of the broader contraction in the smartphone market and the market forecast are based on Reuters and Counterpoint; Qualcomm’s expectation of an Android recovery is marked as a company assessment.Sources
- Qualcomm Announces Fourth Quarter and Fiscal 2026 Results — Qualcomm
- Qualcomm shares slide as smartphone weakness clouds growth push — Reuters via MarketScreener
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