Qualcomm faces loss of Apple business, rated ‘Underperform’ by Bank of America

Writing of the wall faded after years in the sun

The analysts see Qualcomm as a leader in smartphone processors, but noted the handset chip market has matured and faces potential headwinds, including higher memory prices and a decline in business from Apple. They added that the company faces the well-known imminent ~$7 billion to $8 billion loss of Apple business.

Apple has historically been one of Qualcomm’s largest modem customers, but the bank expects the relationship to wind down as the iPhone maker shifts to its own internally developed chips. “QCOM’s modems will be completely phased out of iPhones by Fall 2027 as top customer Apple shifts to internal modems,” they wrote.

The report also highlighted a broader trend of smartphone manufacturers investing in their own semiconductor capabilities. Samsung has reduced Qualcomm’s share of processors used in its Galaxy lineup, while Chinese smartphone maker Xiaomi has committed about $7 billion toward internal silicon research and development.

Source: Yahoo Finance

NB: It’s not just Apple that is bailing…