Qualcomm profit falls 25% as chip costs rise, Apple revenue shrinks

Qualcomm reported fiscal Q3 net income of $2 billion, down 25% year-over-year, with revenue falling 4% to $9.95 billion. The company blamed industrywide cost inflation across the chip supply chain. Handset chip revenue dropped 20% to $5.1 billion. CEO Cristiano Amon announced chip price hikes starting September 1 to offset higher input costs. Automotive revenue surged 61% to $1.59 billion, marking 23 consecutive quarters of double-digit growth. IoT revenue grew 9% to $1.83 billion. Qualcomm completed its $3.92 billion acquisition of AI startup Modular Inc. to bolster data center AI capabilities. The company forecast Q4 adjusted EPS of $2.05-$2.25 and revenue of $9.7-$10.5 billion, below analyst expectations. Stock fell 7.6% in after-hours trading.