Qualcomm’s iphone bet shrinking faster than expected – a $5 billion pivot?

The comforting hum of server rooms and the scent of soldering iron – that’s my reality. As Senior Editor at TechBloom, I’m obsessed with the granular details of the tech world, and right now, Qualcomm’s relationship with Apple is flashing red. The chipmaker just revealed that its business with Cupertino is declining at an alarming rate, falling well below 20% of the components slated for the upcoming iPhone 18 Pro Max.

A gamble that’s losing steam

According to Qualcomm CEO Cristiano Amon, the slowdown isn’t due to Apple’s strategy, but simply a supply bottleneck. Frankly, that’s a convenient excuse. The leaked Tata bill of materials last month already hinted at a dual-sourcing strategy – Qualcomm’s C2 modem alongside a Snapdragon X80 transceiver in US models – designed to preserve mmWave 5G support. But with component share plummeting, the entire concept of a fully Qualcomm-powered iPhone 18 Pro Max feels increasingly improbable.

The bigger picture is stark: Qualcomm is actively pivoting. Astellas’ shift to data center revenue, projected to hit $5 billion by 2027, suggests a calculated retreat. And if Apple abandons the Qualcomm C2 modem entirely, the implications for consumers – particularly in the US – are significant.

What’s on the line for the consumer?

Let’s be clear: the decision matters. Are we looking at a future where the iPhone 18 Pro Max relies solely on Apple’s in-house C2 modem? If so, we're talking about potential compromises on battery life, a limitation on precise location services via iOS, and a continued uncertainty around mmWave 5G performance. While Samsung’s Galaxy S26 Ultra handles mmWave seamlessly through its Snapdragon modem, that’s a luxury Apple may not be able to offer.

Personally, I'd take the C2. Apple’s modems have consistently demonstrated superior battery efficiency, and the privacy gains from limiting precise location are a compelling argument. A minor trade-off on mmWave – if it’s truly absent – is a price I’d be willing to pay. The bottom line? Let’s hope Apple provides some clarity soon; the guessing game is exhausting.

$5 Billion is the projected data center revenue for Qualcomm by 2027 – a bold bet on a different future. And frankly, it's a future where Apple’s reliance on Qualcomm's modems is rapidly diminishing.