Analysts downgrades Qualcomm on Apple modem risk

On Monday, Wolfe Research analyst Chris Caso downgraded Qualcomm stock to “Peer Perform” from “Outperform” as it expects the company will face headwinds as Apple begins to move away from its modem chips next yea
Tae Kim for Barron’s:
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“It’s no surprise Apple has been pursuing a modem,” he wrote. “Recent checks suggest the Apple modem is indeed coming.”
The analyst expects Qualcomm to lose 35% of its current Apple revenue with the iPhone 17 next year, and another incremental 35% loss with the iPhone 18 in 2026. He predicts Qualcomm will retain its modem business for iPhones sold to U.S. carriers that require mmWave wireless technology.
“While Qualcomm has provided this commentary in the past (making an assumption that they would only retain 20% of the iPhone 18), we don’t think this has been reflected in street numbers,” he wrote.

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MacDailyNews Take: It’s way past time that the old extortionist Qualcomm gets some comeuppance. Hopefully, it’s at least as painful as it deserves!
Last month, TF International Securities analyst Ming-Chi Kuo said that Apple finally plans to use its own in-house 5G modems in two upcoming iPhones, first in the iPhone SE4 (slated for first quarter 2025) and then in the “ultra-slim” iPhone 17 – “iPhone 17 Ultra?” – in third quarter 2025.
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