{"id":65632,"date":"2026-07-29T17:38:12","date_gmt":"2026-07-29T21:38:12","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/qualcomm-signals-major-shift-non-handset-revenue-to-replace-apple-business-by-2027\/65632\/"},"modified":"2026-07-29T17:38:12","modified_gmt":"2026-07-29T21:38:12","slug":"qualcomm-signals-major-shift-non-handset-revenue-to-replace-apple-business-by-2027","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/qualcomm-signals-major-shift-non-handset-revenue-to-replace-apple-business-by-2027\/65632\/","title":{"rendered":"Qualcomm Signals Major Shift: Non-Handset Revenue to Replace Apple Business by 2027"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Qualcomm (<a href=\"\/stock\/QCOM\">QCOM<\/a>)<\/strong> expects growth from its non-handset business to fully replace all <strong>Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>)<\/strong> product revenues by fiscal 2027.<\/li>\n<li>Non-handset revenue is projected to exceed <strong>50% of QCT revenues<\/strong> in fiscal 2027, eventually reaching approximately <strong>two-thirds<\/strong> of the segment&#39;s total by fiscal 2029.<\/li>\n<li>The company forecasts a massive acceleration in non-handset revenue growth, jumping from <strong>24% in fiscal 2026<\/strong> to over <strong>60% in fiscal 2027<\/strong>.<\/li>\n<li>For the upcoming fourth quarter, Qualcomm anticipates <strong>QCT Automotive<\/strong> revenue will grow by <strong>60% year-over-year<\/strong>, while <strong>IoT<\/strong> revenues are expected to remain roughly flat.<\/li>\n<li>Despite the long-term optimism, the company reported a <strong>20% year-over-year decline<\/strong> in handset revenues for the third quarter, totaling <strong>$5.1 billion<\/strong>.<\/li>\n<\/ul>\n<p>Qualcomm (<a href=\"\/stock\/QCOM\">QCOM<\/a>) Chief Financial Officer Akash Palkhiwala outlined a transformative roadmap for the semiconductor giant during the company&#39;s third-quarter fiscal 2026 conference call. The company is aggressively pivoting away from its historical reliance on the smartphone market, specifically targeting a future where it no longer depends on revenue from Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>). Management expects that by fiscal 2027, the expansion of its non-handset portfolio will be sufficient to offset the total loss of Apple-related product revenue.<\/p>\n<p>This strategic shift is backed by a projected surge in diversification. Qualcomm (<a href=\"\/stock\/QCOM\">QCOM<\/a>) now estimates that non-handset categories\u2014including automotive, IoT, and data centers\u2014will account for more than <strong>50% of QCT revenues<\/strong> in fiscal 2027. This trajectory is expected to continue, with non-handset sales reaching roughly <strong>two-thirds of the QCT segment<\/strong> by fiscal 2029. <em>This diversification is intended to insulate the company from the cyclical volatility of the global smartphone market.<\/em><\/p>\n<p>The financial acceleration required for this transition is significant. The company anticipates that non-handset revenue growth will skyrocket from <strong>24% in fiscal 2026<\/strong> to more than <strong>60% in fiscal 2027<\/strong>. This &quot;inflection point&quot; is largely driven by the company&#39;s expanding footprint in the automotive sector and its recent push into AI-driven data center infrastructure. <em>Analysts view this as a critical move to redefine Qualcomm as a broad-based computing company rather than just a mobile chip supplier.<\/em><\/p>\n<p>In the immediate term, Qualcomm (<a href=\"\/stock\/QCOM\">QCOM<\/a>) provided specific guidance for its fourth fiscal quarter. The company expects <strong>QCT handset revenues<\/strong> to reach approximately <strong>$5.2 billion<\/strong>, while the <strong>Automotive<\/strong> segment remains a primary growth engine with a projected <strong>60% year-over-year revenue increase<\/strong>. Conversely, the <strong>IoT<\/strong> segment is expected to remain stable, with revenues forecast to be roughly flat compared to the previous year.<\/p>\n<p>The transition comes as Qualcomm (<a href=\"\/stock\/QCOM\">QCOM<\/a>) navigates a challenging current environment. In the third quarter of fiscal 2026, the company reported total revenues of <strong>$9.95 billion<\/strong>, a <strong>4% decline<\/strong> from the prior year. While the automotive business surged <strong>61% to $1.59 billion<\/strong>, the core handset business struggled with a <strong>20% drop<\/strong>, highlighting the urgency of the company&#39;s diversification strategy. <em>The market&#39;s reaction remains mixed as investors weigh long-term growth targets against near-term headwinds in the mobile sector.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Qualcomm (QCOM) expects growth from its non-handset business to fully replace all Apple (AAPL) product revenues by fiscal 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