Qualcomm CEO Cristiano Amon told Reuters that Apple revenue will decline faster than anticipated due to supply constraints reducing Qualcomm's component share in the next iPhone launch well below the earlier 20 percent estimate. The drop begins in the fourth quarter.

Qualcomm is raising prices starting September 1 to offset supply chain cost increases. Amon stated they are "just passing through big cost increases." By fiscal 2027, Qualcomm expects most chip sales from non-smartphone categories, with data center growth replacing Apple-related revenue from fiscal 2026.

Apple has developed its own modem chips used in the iPhone 16e, iPhone 17e, and iPhone Air. Rumors suggest a broader transition starting with the iPhone 18 lineup, featuring a C2 modem promising faster speeds and better power efficiency. The companies' patent licensing agreement runs through March 2027, with uncertainty over renewal versus a full shift to Apple silicon.