QCOM’s Q3 handset revenue declines due to memory challenges and reduced Apple reliance, while AI data center expansion offers long-term potential.
Qualcomm’s handset segment revenue fell in the third quarter, driven by lower memory demand and a sharper-than-expected decline in Apple-related sales. The company’s iPhone revenue remains minimal as Apple reduces dependency, though royalty income stays intact.
Analysts highlight Qualcomm’s entry into the artificial intelligence data center market as a growth opportunity, but caution that revenue ramps will be gradual. Competitiveness in the sector remains uncertain, with Qualcomm viewed as a late entrant. Meanwhile, automotive and IoT segments showed strength, rising 61% and 9% respectively in Q3, supporting diversification efforts.
The shift away from handsets toward higher-margin segments could stabilize long-term revenue, though near-term headwinds persist in its core mobile business.