Qualcomm CFO warns falling Apple revenue will dent its December quarter

For Qualcomm, the December quarter usually benefits from a fresh round of iPhones. This year, its most famous customer is shrinking its order.

Chief Financial Officer Akash Palkhiwala has signaled that declining Apple revenue will keep December from being the chipmaker’s strongest quarter of the year.

What Qualcomm is projecting

The warning dates back to Qualcomm’s July 29, 2026 earnings call. Management projected that Apple-related revenue in the December quarter would fall roughly 50% compared with the September quarter.

The company cited two causes: supply constraints and lost market share. Qualcomm’s earlier goal of winning 20% share of components in the new iPhone lineup appears out of reach, which accelerates the expected decline from one of its most important partners.

The dollars involved are not trivial. Qualcomm estimated that Apple accounted for approximately $7.5 billion of its roughly $44 billion in fiscal 2026 revenue.

The handset business was already showing the strain. In fiscal fourth-quarter 2026 results released November 4, handset chip revenue fell 26% year over year to about $5.1 billion.

Automotive moved the other way. Revenue in that segment jumped 89% to approximately $2.0 billion.

Even with the Apple drag, Qualcomm guided December-quarter revenue to $10.4–11.2 billion. That range landed slightly above consensus estimates.

Background: diversifying away from the phone

The company expects its non-handset segments, including automotive and the Internet of Things, to fully offset the lost Apple revenue in fiscal 2027. IoT covers the wide category of connected devices beyond phones, from industrial sensors to smart home gear.

Data centers are the other major bet. Qualcomm has set a $5 billion revenue target for that business in fiscal 2027 and is aiming for $15 billion by 2029.

The company has also started production on two custom silicon deals with hyperscalers. Those hyperscaler deals are expected to begin contributing revenue in the December quarter. That timing matters: the quarter Apple revenue drops is also the quarter the data center story is supposed to start showing up in the numbers.

What this means for Qualcomm and its investors

The numbers frame the challenge. Even after its 89% surge, automotive revenue of approximately $2.0 billion remained well below handset revenue of about $5.1 billion in the same quarter.

That makes the claim that non-handset segments will fully compensate for Apple in fiscal 2027 the key line to watch.

The data center targets carry their own risk profile. A $5 billion goal for fiscal 2027 and $15 billion by 2029 are ambitions, not booked revenue, and the two hyperscaler deals are the first real evidence on whether that roadmap holds up.

Investors will likely focus on three markers when Qualcomm next reports. First, whether the Apple decline tracks the roughly 50% sequential drop management outlined. Second, whether automotive momentum continues. Third, whether the custom silicon deals produce visible revenue on schedule.