---
title: "Qualcomm (Minutes): Its share in this year's new iPhone models will drop to 70%"
description: "Qualcomm (QCOM.O) released its fiscal year 2025 Q2 earnings report (as of March 2025) during the U.S. after-hours trading session on May 1, 2025, Beijing time. Below is the Minutes of Qualcomm's fisca"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/29278531.md"
published_at: "2025-05-01T05:01:24.000Z"
author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)"
---

# Qualcomm (Minutes): Its share in this year's new iPhone models will drop to 70%

Qualcomm (QCOM.O) released its fiscal year 2025 Q2 earnings report (as of March 2025) during the U.S. after-hours trading session on May 1, 2025, Beijing time:

Below are the Minutes of Qualcomm's fiscal year 2025 Q2 earnings call. For a Quick Interpretation of the report, please visit《[Qualcomm: Samsung’s ‘Blood Transfusion’ Fails to Sustain Momentum, Apple’s ‘Sabotage’ Hides Landmines](https://longportapp.cn/zh-CN/topics/29276739)》

**I.** $Qualcomm(QCOM.US) **Key Earnings Highlights:**

**II. Detailed Earnings Call Content**

**2.1. Executive Summary:**

**1\. Fiscal Year 2025 Q2 Financial Performance**

Total Revenue: $10.98 billion.

Non-GAAP EPS: $2.85.

Semiconductor Business (QCT): Revenue reached $9.5 billion.

Licensing Business (QTL): Revenue was $1.3 billion.

Growth Highlights:

Automotive and IoT revenues grew 59% and 27% YoY, respectively.

Dividends & Buybacks: Returned $2.7 billion to shareholders, including $938 million in dividends and $1.7 billion in buybacks.

**2\. Technology & Product Updates**

**Mobile:**

At MWC, we launched the x85 5G platform—the world’s most advanced AI-powered modem-to-antenna system. It will debut in smartphones, cars, and IoT devices in H2 2025. For smartphones, it will be Android-exclusive.

To date, global Android OEMs have released 90 flagship models with Snapdragon 8 Elite.

**AI PC:**

Since mid-2024, over 85 Snapdragon X designs are in production/development, targeting 100+ by 2026. Third-party data shows Snapdragon PCs captured ~9% of Windows laptops priced above $600 in the U.S. and Europe’s top 5 markets in Q1 2025.

**XR:**

Long-term partnerships with Meta and Google drove XR growth; 15+ smart glasses designs globally.

**Industrial IoT:**

Collaborating with Palantir to integrate AI into edge industrial systems.

**Automotive:**

Won 30 new projects, including 5 ADAS deals and orders from Nio, ZEEKR, Great Wall, and Dongfeng. 14 commercial vehicles launched globally (29 YTD).

New partnerships with Visteon and Patel for next-gen AI cockpit solutions; pre-integrated ADAS with ASV for L1/L2+ features.

**Edge Networking:**

Launched the x85-based 4th-gen FWA platform—the world’s first 5G Advanced-ready FWA solution.

**3\. Financial Outlook**

FY2025 Q3 Guidance:

**Non-GAAP Revenue: $9.9–10.7B.**

Non-GAAP EPS: $2.60–2.80.

QTL: Revenue of $1.15–1.35B (EBT margin: 67–71%).

QCT: Revenue of $8.7–9.3B (EBT margin: 28–30%).

**Mobile: +10% YoY; IoT & Auto: +15% and +20% YoY.**

**4\. M&A**

Announced acquisition of Edge Impulse Inc. (undisclosed terms) on March 11, 2025. Its edge-AI platform serves 170K+ developers for predictive maintenance, asset tracking, etc.

**5\. FY2029 Targets**

Non-mobile revenue: $22B; PC: $4B; XR: $2B; Auto: $8B; Industrial IoT: $4B.

**2.2. Q&A:**

**Q: How do tariffs factor into mobile guidance? Any pre-stocking impacts?**

**A:** Tariff assumptions are baked into guidance—no material direct impact observed. No abnormal customer pre-orders.

**Q: Any updates on Huawei royalty negotiations?**

**A:** No progress to share; talks ongoing.

**Q: What drove IoT’s outperformance? Demand pull-forward?**

**A:** Industrial IoT led growth amid market shift from MCUs to MPUs/AI.

**Q: M&A strategy—expanding existing vs. entering new markets?**

**A:** Focused on industrial edge-AI; acquisitions like Edge Impulse build scalable software platforms.

**Q: FY Q4 seasonal factors beyond macro?**

**A:** Normal seasonality for Android/auto/IoT; Apple share to drop to ~70% in fall 2025.

**Q: China risks? Shift from Qualcomm to MediaTek?**

**A:** Strong position intact—design wins span domestic/export markets (smartphones, PCs, autos, XR).

**Q: Chip gross margin dip (90bps QoQ)? Product mix?**

**A:** Minor low-end mix shift; overall trends remain healthy.

**Q: Tariff indirect impacts?**

**A:** Minimal direct/demand effects baked in; indirect risks monitored.

**Q: Auto growth drivers? ADAS inflection timing?**

**A:** 1/3 of pipeline is ADAS; Snapdragon Digital Chassis integrates cockpit/ADAS on one chipset.

**Q: Mobile’s 10% YoY growth—China vs. global splits? Subsidy impacts?**

**A:** China premium (>$400) share rose from 21% (2019) to 30% (2024), fueling growth.

**Q: PC margin outlook as pricing expands downward?**

**A:** 4 platforms now cover sub-$600 PCs; 85+ designs secured (target: 100 by 2026).

**Q: Competition—pressure from Arm’s CSS?**

**A:** Stable Samsung share (75% vs. 50% historically); MediaTek remains key rival in China.

**Q: AI’s ASP boost in mobile vs. PC?**

**A:** Mobile AI resembles feature-to-smartphone transition; NPU content/ASP rises. PC AI early-stage.

**Q: OpEx trajectory post-Apple share loss?**

**A:** Shifting investments from mobile to auto/IoT (PC/XR/industrial).

**Q: Rationale for 100% FCF return?**

**A:** Strong cash reserves; opportunistic buybacks amid low valuation.

**Disclosures & Disclaimers:** [**Dolphin Research Disclosures**](https://support.longbridge.global/topics/misc/dolphin-disclaimer)

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- [QCOM.US - Qualcomm](https://longbridge.com/en/quote/QCOM.US.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.