In the ever-shifting landscape of semiconductor giants, Qualcomm Inc. is charting a new course, increasingly pinning its fortunes on the Android ecosystem as its long-standing relationship with Apple Inc. frays. Recent earnings reports reveal a company in transition, with premium Android smartphones emerging as the primary growth engine for its chip business. This pivot comes at a pivotal moment, as Apple rolls out its own modems, potentially severing a lucrative revenue stream for Qualcomm.

According to a report from MacRumors, Qualcomm is gradually reducing its dependence on Apple, with growing demand for high-end Android devices driving its chip sales. The company’s latest fiscal fourth-quarter results, released on November 5, 2025, underscore this shift. Qualcomm reported revenue of $11.27 billion, surpassing analyst expectations, fueled largely by its Qualcomm CDMA Technologies (QCT) segment, which saw a 13% year-over-year increase to $9.8 billion.

Industry analysts point to Qualcomm’s Snapdragon platform as a key beneficiary of this trend. Partnerships with Android manufacturers 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 positions Qualcomm to capitalize on the booming market for AI-enabled smartphones in emerging economies.

Shifting Revenue Streams

Delving deeper into Qualcomm’s financials, the company’s earnings before taxes in the QCT division hit 29%, reflecting robust demand for its premium application processors. A post on X by analyst Sravan Kundojjala highlighted Qualcomm’s September quarter performance, noting revenue up 9% quarter-over-quarter and 10% year-over-year. The guidance for the December quarter projects $10.3 billion to $10.9 billion in QCT revenue, signaling continued momentum.

However, this optimism is tempered by the impending loss of Apple as a major modem customer. Reuters reported earlier in 2025 that Qualcomm’s shares dipped more than 6% following warnings about this transition. Apple, which accounted for a significant portion of Qualcomm’s modem sales, is expected to fully integrate its in-house modems by 2026, a move that could slash Qualcomm’s revenue from this segment by billions.

To offset this, Qualcomm is diversifying into automotive and IoT sectors. The company’s acquisition of Arduino aims to expand its developer ecosystem to over 30 million users, as noted in a post on X by Prabhu Ram. Furthermore, Qualcomm’s entry into AI inference data centers with chips like the AI200 and AI250 positions it for growth in non-mobile markets, with material revenue anticipated from fiscal 2027.

Android’s Premium Surge

The Android market’s premium segment is proving to be Qualcomm’s saving grace. PhoneArena detailed how Qualcomm’s latest application processors enable Android phones to receive up to eight years of software and security updates, a feature that rivals Apple’s ecosystem and appeals to enterprise users. This extended support is particularly attractive for flagship devices from brands like Google and OnePlus.

Analyst Ming-Chi Kuo, in a 2024 X post, predicted Qualcomm would dominate as the sole SoC supplier for Samsung’s Galaxy S25 due to issues with Samsung’s Exynos chips. This forecast has borne out, with recent news from Digitimes confirming Qualcomm’s QCT business growth driven by Android demand. The report emphasizes rising content per device and partnerships that reduce Qualcomm’s Apple dependence.

Qualcomm’s CEO, Cristiano Amon, echoed this sentiment in the earnings call, stating, ‘We are seeing strong momentum in premium Android smartphones, which are now the main driver of our chip business,’ as quoted in CNBC. This momentum is bolstered by AI features in Snapdragon chips, positioning Qualcomm against competitors like MediaTek in the mid-range segment.

Navigating 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 FinancialContent article, introduces both opportunities and rivalries, especially in AI chip landscapes.

X posts from industry insiders like Yogesh Brar in 2023 anticipated big gains for Qualcomm with the Snapdragon 8 Gen 4, featuring Oryon CPU on 3nm. This chip is set to power next-gen Android flagships, promising significant performance leaps. Yet, Qualcomm must contend with Google’s Tensor G5 and potential MediaTek advancements, which could erode its market share if Android fragmentation persists.

Beyond smartphones, Qualcomm’s automotive ambitions are accelerating. Seeking Alpha reports the company targeting $22 billion in automotive and IoT revenue by fiscal 2029, driven by AI and connectivity solutions. This diversification is crucial as Android reliance grows, providing a buffer against volatility in 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, as per Sravan Kundojjala’s X analysis. For the second time, Qualcomm highlighted shipments in this nascent category, signaling potential for explosive growth.

Investing.com notes Piper Sandler raising Qualcomm’s stock price target to $200, citing strong fiscal 2025 results with EPS of $3.00 exceeding forecasts. Despite tax headwinds, the upbeat outlook reflects confidence in Qualcomm’s Android-driven growth and AI initiatives.

Looking ahead, Qualcomm’s role in the AI boom is under scrutiny. XTB describes a solid beat in Q4 2025 earnings, with an optimistic forecast. As Nvidia dominates AI, Qualcomm aims to carve a niche in edge computing and mobile AI, leveraging its Android ecosystem to deploy AI features at scale.

Strategic Partnerships and Risks

Partnerships remain vital. The deepened ties with Samsung, as evidenced by the Galaxy S25’s heavy Snapdragon reliance, counteract Apple’s exit. However, an X post by Devin Arthur cautions against overstatement, noting Qualcomm’s diversification into auto and IoT as key growth leaders per earnings reports.

Risks abound, including geopolitical tensions affecting supply chains and potential slowdowns in premium smartphone demand. Qualcomm’s own press releases emphasize innovation in 5G and beyond, but regulatory scrutiny, such as ongoing antitrust concerns, could impact operations.

Industry sentiment on X, including posts from Android Authority and Mukul Sharma, reflects excitement around Qualcomm’s technological advancements, like the Snapdragon 855’s legacy evolving into current flagships. As Qualcomm navigates this Android-centric future, its ability to innovate and diversify will determine long-term success in a post-Apple era.