Qualcomm Signals Price Hikes as Smartphone Revenue Slides

The company’s latest earnings report highlights its lowest handset revenue since 2021, a slump attributed to expensive memory components and broader supply shortages affecting everything from laptops to game consoles. Rather than absorbing these costs, Qualcomm is shifting the burden to device manufacturers. This pricing strategy arrives alongside a projected drop in modem sales for upcoming iPhone models, prompting the firm to accelerate its pivot toward automotive and data center markets.

Qualcomm aims to fundamentally restructure its income streams, targeting a future where smartphones account for only one-third of its total revenue by 2029. To insulate itself from the volatility of the mobile market, the company is doubling down on a decade-long supply strategy to expand its footprint in high-growth sectors, ensuring that mobile devices no longer serve as the sole engine of its financial performance.