Qualcomm, MediaTek Mobile Chip Revenue Falls on Memory Shortage

Qualcomm and MediaTek reported sequential declines in mobile-chip revenue for the March quarter as an ongoing memory shortage and higher DRAM prices weighed on smartphone demand. Qualcomm said handset revenue fell 23% from the prior quarter and forecast June-quarter handset revenue of about $4.9 billion, down 18.6%. MediaTek said mobile-phone revenue dropped 17% from the prior quarter and expects global smartphone shipments to fall 15% in 2026 because of high memory-chip prices.

MediaTek Chief Executive Officer Rick Tsai said the mobile business is facing “pretty strong headwinds” from DRAM supply and pricing, though he expects the replacement cycle to resume in about a year or a little longer. Qualcomm Chief Financial Officer Akash Palkhiwala said June should mark the bottom for handset revenue from Chinese original-equipment makers, with sequential growth expected afterward.