--- title: "Qualcomm (Minutes): Its share in this year's new iPhone models will drop to 70%" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/29278531.md" 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 fiscal year 2025 Q2 earnings call. For the Quick Interpretation of the earnings report, please refer to "Qualcomm: Samsung's 'Blood Transfusion' Fails to Sustain Momentum..." datetime: "2025-05-01T05:01:24.000Z" locales: - [en](https://longbridge.com/en/topics/29278531.md) - [zh-CN](https://longbridge.com/zh-CN/topics/29278531.md) - [zh-HK](https://longbridge.com/zh-HK/topics/29278531.md) 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) ### Related Stocks - [QCOM.US](https://longbridge.com/en/quote/QCOM.US.md) - [AAPL.US](https://longbridge.com/en/quote/AAPL.US.md)