Qualcomm’s smartphone chipset division plays a pivotal role in its business, much like the iPhone does for Apple, generating a significant portion of revenue. In the second quarter of 2025, 61% of Qualcomm’s revenue was driven by its Snapdragon brand, amassing $6.33 billion. Although Apple has shifted towards its own C1 5G modem for the iPhone 16e, Qualcomm CEO Christiano Amon optimistically reported a 15% growth in chipset revenue this year, even without Apple as a partner.
Interestingly, this revenue bump isn’t attributed to higher sales volume. An analyst pointed out that the increase stems from the elevated pricing of Qualcomm’s silicon, a strategy that might pose challenges in future quarters.
The company’s total revenue of $10.37 billion saw a major contribution from Snapdragon 8 Elite sales. Before its release, it was noted that this chip would cost more than the Snapdragon 8 Gen 3 due to integration of Qualcomm’s own Oryon cores. While this might have strained relationships with phone partners, it ultimately proved beneficial for Qualcomm.
Despite these gains, Qualcomm faces rising competition from MediaTek, which has overtaken it as the leading smartphone chipset provider globally. MediaTek’s Dimensity 9500 now sees higher demand compared to its predecessors, the Dimensity 9400 and 9400+. Looking ahead, MediaTek plans to commence 2nm production by year-end, a move that could challenge Qualcomm’s market position as both companies aim to utilize cutting-edge technology by 2026.
Qualcomm’s strategy must evolve as it prepares to launch the Snapdragon 8 Elite Gen 2 in September. This new model is expected to be slightly more expensive than its predecessor, suggesting that Qualcomm may need to boost sales volumes to replicate this quarter’s success.
