Qualcomm Feels the Heat of the Memory Chip Shortage

Qualcomm, one of the biggest chip suppliers for smartphones, has begun to feel the impact of lower orders from brands. While Samsung may use the latest Snapdragon flagship in almost 75% of all Galaxy S26 phones, the company expects lower revenue in the second quarter (Q2) of 2026 than analysts’ forecasts. 

Qualcomm lowers revenue outlook as memory shortage hits phone makers

Qualcomm announced that it expects Q2 2026 revenue to range between $10.2 billion and $11 billion. This is below the analysts’ average estimate of about $11.12 billion. The company also expects its current quarter earnings to remain between $2.45 and $2.65 per share (lower than Wall Street’s $2.89 expectations).

Qualcomm CEO Cristiano Amon said the weaker forecast is because of a memory chip shortage affecting smartphone customers. “I’m very happy with the business – I just wish we had more memory,” said Amon in an interview with Reuters. “Everything is basically OEMs, especially in China, bringing down their inventory levels to adjust to their memory supply.”

Qualcomm expects to report about $6 billion in smartphone chip sales in Q2 2026. This is lower than analysts’ estimates of around $6.85 billion. The company says that high-end Android phones will help it to drive SoC sales. These premium devices could continue to see solid sales even as costs increase.

Meanwhile, Counterpoint Research said global smartphone chip revenues may grow in double digits in 2026, thanks to solid demand for premium-tier SoCs. However, the firm expects overall shipments to decline by 7% year-over-year because of rising memory prices.

Qualcomm may see a 9% year-over-year drop in SoC shipments. Surprisingly, Samsung is likely to see a 7% year-over-year increase. The Korean company’s in-house chip, the Exynos 2600, could power some units of its upcoming Galaxy S26 and S26+ models, as well as the Z Flip 8, helping boost shipments. The Galaxy S26 Ultra is likely to run Qualcomm’s Snapdragon 8 Elite Gen 5 globally.