Apple may be moving faster than expected in its modem development work, and Qualcomm’s latest comments suggest that shift is already reshaping the iPhone supply chain.
Qualcomm overnight said supply constraints are shrinking some of its Apple business faster than anticipated. “It’s availability of supply,” CEO Cristiano Amon told Reuters.
While he wasn’t specific, that likely reflects the broader industry shortage in memory, storage, and everything else and means the company’s share of components used for the next iPhone launch will fall “well below” its anticipated estimates. Amon says this is part of a transition in which future Qualcomm income will be generated by AI datacenter demand.
The company also intends to boost modem prices on Sept. 1 (And remember, the patent licensing agreement between Apple and Qualcomm expires in March 2027.)
Given Apple is selling plenty of smartphones (even as the broader industry shrinks), supply constraints won’t necessarily be because of demand for the devices; this could reflect Apple’s plan to divide the iPhone release schedule across several months, as well as its future modem development efforts.
