In the ever-changing landscape of semiconductor giants, Qualcomm Inc. is charting a new course, increasingly banking its fortunes on the Android ecosystem as its long-standing relationship with Apple Inc. frays. Recent earnings reports reveal a company in transition, with high-end Android smartphones becoming the main growth engine for its chip business. This pivot comes at a pivotal time, as Apple rolls out its own modems, potentially interrupting a lucrative revenue stream for Qualcomm.
According to a report from MacRumorsQualcomm is gradually reducing its dependence on Apple, with growing demand for high-end Android devices boosting its chip sales. The company’s latest financial results for the fourth quarter, released on November 5, 2025, highlight this change. Qualcomm reported revenue of $11.27 billion, beating analysts’ expectations, fueled largely by its Qualcomm CDMA Technologies (QCT) segment, which saw a 13% year-over-year increase to $9.8 billion.
Industry analysts see Qualcomm’s Snapdragon platform as one of the biggest beneficiaries of this trend. Partnerships with Android makers like Samsung Electronics Co. have deepened, with Snapdragon chips powering 75% of Samsung’s Galaxy S25 series, up from previous generations. This reliance on Android is not without risks, but it allows Qualcomm to capitalize on the booming market for AI-enabled smartphones in emerging economies.
Changing sources of income
Digging deeper into Qualcomm’s financials, the QCT division’s pre-tax profit reached 29%, reflecting strong demand for its high-end applications processors. An article on Guidance for the December quarter calls for between $10.3 billion and $10.9 billion in QCT revenue, signaling continued momentum.
However, this optimism is tempered by Apple’s impending loss as a major modem customer. Reuters reported earlier in 2025 that Qualcomm shares fell more than 6% following warnings about this transition. Apple, which accounts for a significant portion of Qualcomm’s modem sales, is expected to fully integrate its in-house modems by 2026, a move that could cut billions from Qualcomm’s revenue in this segment.
To compensate for this, Qualcomm is diversifying into the automotive and IoT sectors. The company’s acquisition of Arduino aims to expand its developer ecosystem to over 30 million users, as noted in an article on X by Prabhu Ram. Additionally, Qualcomm’s entry into AI inference data centers with chips such as the AI200 and AI250 positions it for growth in non-mobile markets, with significant revenue expected starting in fiscal 2027.
The rise of premium Android power
The premium segment of the Android market is proving to be Qualcomm’s saving grace. TelephoneArena explained how Qualcomm’s latest application processors allow Android phones to receive up to eight years of software and security updates, a feature that rivals Apple’s ecosystem and appeals to business users. This expanded support is especially great for flagship devices from brands like Google and OnePlus.
Analyst Ming-Chi Kuo, in an article on 2024 This prediction has been confirmed, with the recent news of Digitimes confirming the growth of Qualcomm’s QCT business, driven by Android demand. The report emphasizes increasing content per device and partnerships that reduce Qualcomm’s reliance on Apple.
Qualcomm CEO Cristiano Amon echoed this sentiment during the earnings call, saying, “We are seeing strong momentum in high-end Android smartphones, which are now the primary driver of our chip business,” as cited in CNBC. This momentum is reinforced by the AI features of Snapdragon chips, positioning Qualcomm against competitors like MediaTek in the mid-range segment.
Facing competitive pressures
Competition in the mobile SoC market is intensifying. GuruFocus cites CounterPoint Research predicting Qualcomm’s dominance in advanced smartphone chips by 2025, thanks to its 3nm process technology. However, Samsung’s evolving alliance with Qualcomm, as discussed in a Financial content This article presents both opportunities and rivalries, particularly in the AI chip landscape.
X publications from industry insiders like Yogesh Brar in 2023 predicted big gains for Qualcomm with the Snapdragon 8 Gen 4, featuring an Oryon processor on 3nm. This chip is intended to power next-generation Android flagships, promising significant advancements in performance. Still, Qualcomm must contend with Google’s Tensor G5 and potential advances from MediaTek, which could erode its market share if Android’s fragmentation persists.
Beyond smartphones, Qualcomm’s automotive ambitions are accelerating. In search of Alpha reports that the company is targeting $22 billion in automotive and IoT revenue by fiscal 2029, driven by AI and connectivity solutions. This diversification is crucial as reliance on Android increases, as it provides a hedge against the volatility of the consumer electronics market.
AI and future horizons
Artificial intelligence is a cornerstone of Qualcomm’s strategy. The company’s push into AI-enabled devices, including smart glasses, marks an inflection point, according to Sravan Kundojjala’s X-Analysis. For the second time, Qualcomm has highlighted shipping in this nascent category, signaling explosive growth potential.
Investir.com notes Piper Sandler raising Qualcomm’s stock price target to $200, citing strong fiscal 2025 results with EPS of $3.00 beating forecasts. Despite fiscal challenges, the optimistic outlook reflects confidence in Qualcomm’s Android-based growth and AI initiatives.
Looking ahead, Qualcomm’s role in the AI boom is under scrutiny. XTB Describes a strong fourth-quarter 2025 earnings beat, with optimistic guidance. While Nvidia dominates AI, Qualcomm aims to carve out a niche in edge computing and mobile AI, leveraging its Android ecosystem to deploy AI capabilities at scale.
Strategic partnerships and risks
Partnerships remain vital. Deep ties with Samsung, as evidenced by the Galaxy S25’s heavy reliance on Snapdragon, thwart Apple’s exit. However, an article by Devin Arthur cautions against exaggeration, highlighting Qualcomm’s diversification into automotive and IoT as key growth leaders according to earnings reports.
The risks are numerous, including geopolitical tensions affecting supply chains and the potential slowdown in demand for high-end smartphones. Qualcomm’s own press releases are focused on innovation in 5G and beyond, but regulatory scrutiny, such as ongoing antitrust concerns, could impact operations.
Industry sentiment on As Qualcomm navigates this Android-centric future, its ability to innovate and diversify will determine its long-term success in a post-Apple era.
