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Qualcomm handset revenue falls nearly 20% as fourth-quarter outlook softens
Qualcomm warned the impact would worsen in fiscal fourth quarter as memory and PC component supply shortages persist and Apple modem share losses deepen.
Qualcomm’s fiscal 2026 third-quarter results, reported July 29, showed a broader picture of strength alongside a meaningful weakness in its handset-driven semiconductor business. The company posted a nearly 20% year-over-year decline in core semiconductor (QCT) handset revenue, with the drop attributed to ongoing memory supply shortages and a faster-than-expected loss of modem share at Apple.
Yahoo Finance reports that Qualcomm said the pressure will intensify in its fiscal fourth quarter after its share in Apple’s next iPhone lineup fell materially below earlier expectations. The report also links the issue to Apple’s continued rollout of its in-house modem across more iPhone models as part of a plan to reduce dependence on third-party suppliers.
In addition, Qualcomm issued softer-than-expected fourth-quarter guidance, pointing to persistent supply shortages for PC components, particularly memory. Even so, some analysts argue investors are overemphasizing near-term handset weakness while other growth areas, including AI data centers, automotive, and the Internet of Things, could offset the concern over time, according to Yahoo Finance.