Seaport Cuts Qualcomm to Sell Citing 10–15% Smartphone Volume Drop
Seaport downgraded Qualcomm to Sell from Neutral, warning global smartphone volumes will fall 10–15% due to higher memory costs and weaker handset demand, reducing chip shipments. Rising in-house processor development by Apple and leading OEMs threatens Qualcomm’s market share and could force deeper price cuts and lower royalty rates.
1. Seaport Downgrade and Market Outlook
Seaport cut Qualcomm to Sell from Neutral, highlighting a projected 10–15% decline in global smartphone volumes this year due to rising memory prices and softer handset demand which is expected to reduce overall chip shipments and shrink Qualcomm’s total addressable market.
2. Apple’s In-House Silicon Threat
Apple’s decision to maintain higher memory configurations in its latest devices could further widen its lead, while its ongoing push to replace Qualcomm components raises the prospect of Qualcomm exclusion from iPhone models starting next year, intensifying competitive pressures.
3. OEM Processor Development and Pricing Pressure
Key Android OEMs are already scaling back memory content or cutting prices on lower-end models, opening opportunities for rivals like MediaTek, and several top handset makers are accelerating in-house development of application processors and modems, threatening long-term royalty revenue and forcing potential price concessions.