QCT HandsetsNarrow moat

Qualcomm (QCOM) — moat facet

Sixty-three percent of revenue, a record in fiscal 2025, and falling 20% a quarter as Apple leaves.

Handset chips are still most of Qualcomm. The line had revenue of $27,793 million in fiscal 2025, 63% of the company 1, from $24,863 million in fiscal 2024 and $22,570 million in fiscal 2023 2. It covers products sold for use in mobile handsets 3: Snapdragon processors with integrated modems, and standalone modems.

Handset revenue, quarter to June ($m)$5,899mQ3 FY2024$6,328mQ3 FY2025$5,086mQ3 FY2026Qualcomm Forms 10-Q
The June quarter fell below the level of two years earlier.

The unit that is priced is the chipset, sold to the phone maker per device. Qualcomm sells the integrated modem-and-processor platform to most Android makers and, to Apple, a modem on its own, which the filing says carries lower revenue and margin than the combined products 4. Apple, Samsung and Xiaomi each supplied 10% or more of the company's revenue in fiscal 2025 5.

The line's history is a cycle. On the presentation used then, handset revenue was $16,830 million in fiscal 2021 and $25,027 million in fiscal 2022, a 49% rise in the 5G upgrade year 6; radio-frequency front-end parts were reported separately then and are now folded into the streams. After a fall in fiscal 2023 the line recovered to a record in fiscal 2025.

Profit is not disclosed by stream. QCT as a whole earned 30% before tax in fiscal 2025 and 29% in 2024 7, and 26% in 2023 8. Handsets set most of that, and the June 2026 quarter shows what happens when they fall: QCT's margin dropped to 26% from 30% on lower revenue and higher product costs 9.

The decline has started. Handset revenue was $5,086 million in the June 2026 quarter against $6,328 million, down 20%, and $18,934 million in the nine months against $20,831 million 10. The filing blames lower chipset shipments to certain major customers, which cut build plans to reduce inventory after memory supply constraints and price increases 11. The chief executive has said supply problems will leave Qualcomm's share of modems in the next premium iPhones well below the 20% it had expected 12.

The outlook is a known loss and an unknown one. The Apple modem business is ending on Apple's schedule. What is not known is whether the Android makers keep buying Snapdragon at rising prices while memory makes their phones dearer. The figure to watch is handset revenue from the fiscal 2027 quarters, when Apple is mostly gone: a decline much smaller than Apple's share would mean the Android franchise is holding.

Moat trajectory: Narrowing

Handset revenue fell 20% in the June 2026 quarter as Apple's own modem arrives.

The number that tests this moat
Reported
Handset revenue, nine months
$18,934M in fiscal 2026 to date, -9% on $20,831M

Once Apple is mostly gone in fiscal 2027, a decline much smaller than Apple's share would mean the Android franchise is holding.

Source: Qualcomm Form 10-Q, Q3 fiscal 2026 ↗
References
  1. Moat Explorer calcThe line had revenue of $27,793 million in fiscal 2025, 63% of the company , from $24,863 million in fiscal 2024 and $22,570 million in fiscal 2023 .
    Moat Explorer calculation from Qualcomm's Forms 10-K and 10-Q: shares of revenue and segment profit, growth rates — FY2021 to Q3 FY2026 · publ. 2026-09-23 · source ↗
  2. ReportedThe line had revenue of $27,793 million in fiscal 2025, 63% of the company , from $24,863 million in fiscal 2024 and $22,570 million in fiscal 2023 .
    Qualcomm Form 10-K FY2025 - QCT revenue streams (handsets, automotive, IoT) and EBT, QTL revenue and EBT for fiscal 2024-2025; revenue stream definitions; segment reconciliation; customers at 10% or more (Apple, Samsung, Xiaomi); licensing agreements with two Chinese OEMs and Transsion; Huawei licence expiry — FY2024-FY2025 · publ. 5 November 2025 · source ↗
  3. ReportedIt covers products sold for use in mobile handsets : Snapdragon processors with integrated modems, and standalone modems.
    Qualcomm Form 10-K FY2025 - QCT revenue streams (handsets, automotive, IoT) and EBT, QTL revenue and EBT for fiscal 2024-2025; revenue stream definitions; segment reconciliation; customers at 10% or more (Apple, Samsung, Xiaomi); licensing agreements with two Chinese OEMs and Transsion; Huawei licence expiry — FY2024-FY2025 · publ. 5 November 2025 · source ↗
  4. ReportedQualcomm sells the integrated modem-and-processor platform to most Android makers and, to Apple, a modem on its own, which the filing says carries lower revenue and margin than the combined products .
    Qualcomm Form 10-K FY2025, Item 1A - Apple purchases MDM (thin modem) products with lower revenue and margin contributions than combined modem and application processor products — FY2025 · publ. 5 November 2025 · source ↗
  5. ReportedApple, Samsung and Xiaomi each supplied 10% or more of the company's revenue in fiscal 2025 .
    Qualcomm Form 10-K FY2025 - QCT revenue streams (handsets, automotive, IoT) and EBT, QTL revenue and EBT for fiscal 2024-2025; revenue stream definitions; segment reconciliation; customers at 10% or more (Apple, Samsung, Xiaomi); licensing agreements with two Chinese OEMs and Transsion; Huawei licence expiry — FY2024-FY2025 · publ. 5 November 2025 · source ↗
  6. ReportedOn the presentation used then, handset revenue was $16,830 million in fiscal 2021 and $25,027 million in fiscal 2022, a 49% rise in the 5G upgrade year ; radio-frequency front-end parts were reported separately then and are now folded into the streams.
    Qualcomm Form 10-K FY2022 - QCT revenue by handsets, RFFE, automotive and IoT for fiscal 2021-2022 on the presentation used then; QTL revenue and EBT — FY2021-FY2022 · publ. November 2022 · source ↗
  7. ReportedQCT as a whole earned 30% before tax in fiscal 2025 and 29% in 2024 , and 26% in 2023 .
    Qualcomm Form 10-K FY2025 - QCT revenue streams (handsets, automotive, IoT) and EBT, QTL revenue and EBT for fiscal 2024-2025; revenue stream definitions; segment reconciliation; customers at 10% or more (Apple, Samsung, Xiaomi); licensing agreements with two Chinese OEMs and Transsion; Huawei licence expiry — FY2024-FY2025 · publ. 5 November 2025 · source ↗
  8. ReportedQCT as a whole earned 30% before tax in fiscal 2025 and 29% in 2024 , and 26% in 2023 .
    Qualcomm Form 10-K FY2024 - QCT revenue streams and EBT for fiscal 2023-2024; QTL revenue and EBT for fiscal 2023-2024 — FY2023-FY2024 · publ. November 2024 · source ↗
  9. ReportedHandsets set most of that, and the June 2026 quarter shows what happens when they fall: QCT's margin dropped to 26% from 30% on lower revenue and higher product costs .
    Qualcomm Form 10-Q, quarter ended 28 June 2026 - QCT revenue streams, QTL revenue and EBT, and the drivers of each for the quarter and nine months — Q3 FY2026 · publ. 29 July 2026 · source ↗
  10. ReportedHandset revenue was $5,086 million in the June 2026 quarter against $6,328 million, down 20%, and $18,934 million in the nine months against $20,831 million .
    Qualcomm Form 10-Q, quarter ended 28 June 2026 - QCT revenue streams, QTL revenue and EBT, and the drivers of each for the quarter and nine months — Q3 FY2026 · publ. 29 July 2026 · source ↗
  11. ReportedThe filing blames lower chipset shipments to certain major customers, which cut build plans to reduce inventory after memory supply constraints and price increases .
    Qualcomm Form 10-Q, quarter ended 28 June 2026 - QCT revenue streams, QTL revenue and EBT, and the drivers of each for the quarter and nine months — Q3 FY2026 · publ. 29 July 2026 · source ↗
  12. Third-party estimateThe chief executive has said supply problems will leave Qualcomm's share of modems in the next premium iPhones well below the 20% it had expected .
    Android Headlines, 29 July 2026, reporting a Reuters interview with CEO Cristiano Amon after the Q3 fiscal 2026 call - Qualcomm's share of 5G modems in the next premium iPhones well below its original 20% target — July 2026 · publ. 29 July 2026 · source ↗
Sources
Generated September 23, 2026