Qualcomm: Overcoming Potential $7.7 Bln Apple Modem Business Loss
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Qualcomm faces a potential $7.7 billion revenue loss by FY2028 due to Apple's switch to in-house modems. However, Qualcomm's diversification into Automotive and IoT segments is expected to offset this loss, with these segments projected to grow significantly.
February 08, 2025 | 1:30 pm
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NEUTRAL IMPACT
Qualcomm may face a $7.7 billion revenue loss by FY2028 due to Apple's switch to in-house modems. However, its diversification into Automotive and IoT segments is expected to offset this loss, with these segments projected to grow significantly.
Qualcomm's potential revenue loss from Apple is significant, but the company's strategic focus on growing its Automotive and IoT segments, which are projected to grow at 26.6% and 28.1% respectively, suggests a neutral short-term impact as these areas could compensate for the loss.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Apple's decision to switch to in-house modems could impact Qualcomm's revenue by $7.7 billion by FY2028. This move highlights Apple's strategy to reduce dependency on external suppliers.
Apple's move to in-house modems is a strategic decision to reduce reliance on Qualcomm, potentially strengthening Apple's control over its supply chain and reducing costs, which is positive for Apple's stock.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70