Qualcomm shifts focus to data centers amid smartphone sales slump
Chipmaker shifts focus to AI data centers amid a steep drop in smartphone sales.
(Photo via The Verge)
Qualcomm is pivoting its business strategy toward the data center sector as the company faces a significant decline in its primary smartphone market. During its Q4 2026 earnings call, the firm reported that smartphone sales have dropped by approximately 20 percent compared to 2025 figures.
To address this downturn, the company is prioritizing expansion into the artificial intelligence data center business. This transition includes leveraging previously announced partnerships with major technology firms, including Amazon and Meta, to strengthen its market position.
The move represents a strategic effort by Qualcomm to diversify its revenue streams and mitigate the impact of the current weakness in consumer mobile device sales.