Qualcomm, the world's largest supplier of modem chips, released an optimistic earnings report for the third quarter, indicating a 10% year-on-year revenue increase.
Qualcomm Revenue Statistics
Qualcomm reported chip sales of $10.37 billion, slightly exceeding analyst estimates of $10.35 billion.
Apple's Shift from Partnership
Apple, previously a key Qualcomm customer, has decided to shift to its own modem chips, leaving Qualcomm to supply only 20% of Apple's modems by 2026. The impending loss of Apple as a customer has overshadowed Qualcomm's stock, which dropped by over 6%.
Competition from MediaTek
MediaTek surpassed Qualcomm this year to become the global leader in smartphone chipset market share due to its dominance in affordable and mid-range segments. MediaTek also launched the new Dimensity 8450 chipset as a direct competitor to Qualcomm's Snapdragon 8s Gen 4.
Despite the optimistic forecasts, Qualcomm faces market challenges related to Apple's pivot and increasing competition from MediaTek, questioning its positions in the premium market.
