Qualcomm Reports 15% Revenue Growth in Chipset Business Without Apple, Analyst Indicates It’s Not Due to Increased Sales Volume

The chipset division at Qualcomm is akin to Apple’s iPhone in terms of revenue generation, serving as the backbone of the company’s financial success. Recent reports from Qualcomm’s Q2 2025 earnings reveal that an impressive 61% of its quarterly revenue—amounting to $6.33 billion—was derived from its Snapdragon brand. However, the departure of Apple from utilizing Qualcomm’s technology, specifically with its proprietary C1 5G modem introduced in the iPhone 16e, has created a notable gap in expected earnings.

Despite this challenge, Qualcomm’s CEO, Christiano Amon, reported a 15% rise in chipset revenue year-to-date, a positive development in light of Apple’s pivot away from its products. Yet, it’s important to note that the growth in revenue may not necessarily stem from an increase in sales volume. An analyst has raised concerns that relying on higher pricing could backfire in the quarters ahead.

Qualcomm reported total earnings of $10.37 billion in the second quarter, largely bolstered by robust sales of the Snapdragon 8 Elite. Prior to its introduction, company executives signaled that this system-on-chip (SoC) would carry a higher price tag than the Snapdragon 8 Gen 3, a strategic move that favored Qualcomm but posed difficulties for its OEM partners.

According to Reuters, analyst William McGonigle from Third Bridge has pointed out that the surge in chipset revenue was less about increased volume in sales and more about the elevated costs of Qualcomm’s silicon solutions. While top-tier smartphone manufacturers continue to select the Snapdragon 8 Elite, MediaTek is effectively capturing market share by offering competitive pricing for its flagship alternatives.

Notably, MediaTek has recently outpaced Qualcomm to become the leading smartphone chipset supplier globally. In its Q2 2025 earnings call, MediaTek highlighted a growing demand for its Dimensity 9500 over the older Dimensity 9400 and Dimensity 9400+, demonstrating consumer preference for innovation and value. Additionally, MediaTek plans to initiate 2nm tape-out processes by the fourth quarter of this year, putting pressure on Qualcomm as it competes to utilize upgraded lithography technology by 2026.

Looking ahead, the upcoming Snapdragon 8 Elite Gen 2, set for release in September, is expected to be only marginally more expensive than its predecessor. This situation compels Qualcomm to increase its sales volume significantly to match this quarter’s revenue targets.

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