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Qualcomm forecasts strong earnings amid smartphone rebound

Mohammed Fahad
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Qualcomm forecasts strong earnings amid smartphone rebound
  • Qualcomm said it anticipates sales with a midpoint of $12.2 billion and adjusted profit of $3.40 per share.
  • Securities filings show Apple, Samsung, and China’s Xiaomi each still account for over 10% of Qualcomm’s revenue.
  • A significant wave of consumers is upgrading to premium smartphones to leverage AI applications, effectively “hollowing out” the midrange segment, especially in China and India.
  • Qualcomm faces a balancing act between sustaining growth in traditional smartphone chips and capturing new opportunities in AI and automotive sectors, as customer relationships continue to evolve.

US chipmaker Qualcomm reported a robust financial outlook for its upcoming quarter, projecting sales and profits above Wall Street expectations due to a resurgence in premium smartphone demand.

However, the prospect of declining business from key customer Samsung next year sent shares down 2.7 per cent in after-hours trading, erasing some of the day’s nearly 4 per cent gains.

For its current fiscal first quarter ending in December, Qualcomm said it anticipates sales with a midpoint of $12.2 billion and adjusted profit of $3.40 per share.

Qualcomm provides modem chips for smartphones, including a complete share in Samsung Electronics’ latest Galaxy S25 lineup. However, CEO Cristiano Amon revealed the company is preparing for a reduced share—about 75 per cent—in the Galaxy S26, signaling softer future revenues from the Korean electronics giant.

“When you think about Galaxy S26, we’re planning for 75 per cent—that’s what we expect,” Amon told Reuters.

Diversification and market trends

In response to changing dynamics with major clients such as Apple and Samsung, Qualcomm has been diversifying into laptops, automobiles, and data centre chips. Notably, Apple is moving toward building its own modems, shift analysts have been monitoring closely. Securities filings show Apple, Samsung, and China’s Xiaomi each still account for over 10 per cent of Qualcomm’s revenue.

Meanwhile, Amon highlighted on the company’s earnings call that a significant wave of consumers is upgrading to premium smartphones to leverage AI applications, effectively “hollowing out” the midrange segment, especially in China and India.

“You don’t have anything in the middle,” Amon noted. “We continue to see an expansion of the premium tier.”

AI expansion and new clients

Qualcomm announced last month a new line of AI data centre chips, securing Humain—a Saudi-backed AI firm—as a client. Discussions are ongoing with a major “hyperscaler,” Amon confirmed.

“We’re very pleased with the outcome of that conversation,” he said, hinting at further business in the high-growth AI computing sector.

For the fiscal fourth quarter ended September 28, Qualcomm reported revenue of $11.27 billion and adjusted profit of $3 per share. Handset chip revenue climbed 14 per cent year-over-year to $6.96 billion, above Visible Alpha estimates.

Chief Financial Officer Akash Palkhiwala guided for handset revenue to grow at a “low teens” percentage in the fiscal first quarter, implying at least $7.7billion.

Despite concerns regarding client transitions, CEO Amon is confident: “Phones are slowly seeing apps becoming more capable, and that drives people to buy a more capable device, no different than what we saw right after the pandemic,” he said.

China will “win the race” with US in AI: Nvidia CEO

Naushad K. Cherrayil
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China will “win the race” with US in AI: Nvidia CEO
  • Huang argues the West may be undermining itself with internal divisions and regulatory fragmentation
  • While China ramps up support for its tech titans, US and UK firms navigate a maze of emerging compliance mandates that risk dampening innovation.
  • CEO contends that continued lockouts not only risk ceding the global market to others, but also erode dependency on American technology.

In a dramatic assessment of the global artificial intelligence competition, Nvidia’s CEO Jensen Huang has sounded the alarm: China is poised to eclipse the United States in AI advancement, owing to an energy advantage and a more relaxed regulatory climate.

Speaking to the Financial Times at the Future of AI Summit, Huang—whose company now tops the world with a $5 trillion valuation—delivered his most candid prediction yet: “China is going to win the AI race.”

A battle of policy and infrastructure

Huang’s comments come against a backdrop of tightening US export controls that prohibit Nvidia from selling its most advanced AI chips to Chinese buyers. The restrictions, reaffirmed after a high-stakes meeting between President Donald Trump and President Xi Jinping, are intended to safeguard American tech leadership.

However, Huang argues the West may be undermining itself with internal divisions and regulatory fragmentation.

“We need more optimism,” he said, criticising the growing patchwork of state-level AI rules in the US, warning these could splinter technology policy with “50 new regulations.”

By comparison, Huang observed that China’s highly coordinated strategy, including generous power subsidies for data centres, is fueling rapid growth in homegrown AI capabilities. “Power is free,” he noted, pointing to China’s ability to make domestic AI compute vastly more affordable—even as local chips from Huawei and Cambricon remain less energy efficient than Nvidia’s.

Regulatory risks

The contrast is stark: while China ramps up support for its tech titans—including ByteDance, Alibaba, and Tencent—through increased energy subsidies, US and UK firms navigate a maze of emerging compliance mandates that risk dampening innovation.

Huang has previously warned that American AI models are only marginally ahead of those produced by Chinese groups, urging Washington to loosen market restrictions. The CEO contends that continued lockouts not only risk ceding the global market to others, but also erode dependency on American technology.

President Trump, however, remains firm. Last week, he stated, “The most advanced, we will not let anybody have them other than the United States,” signaling a hard line on Nvidia’s state-of-the-art Blackwell chips, though he indicated some willingness to allow “negatively enhanced” versions for the Chinese market.

Amidst the policy standoff, Nvidia is hedging its bets—hosting high-profile events in Washington, opening the door to dialogue with policymakers, and reportedly agreeing (along with AMD) to share 15 per cent of China-based AI chip revenues with the US government if regulation permits. For now, however, rules enabling such sales remain pending.

The sense of urgency in Silicon Valley has only grown since the January debut of DeepSeek, a small but highly sophisticated Chinese AI lab whose language models shook the industry and prompted tough questions about America’s diminishing technical lead.

GCC accelerates past global AI adoption benchmarks

Naushad K. Cherrayil
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GCC accelerates past global AI adoption benchmarks
  • GCC shows how an entire region can align around AI—not only to accelerate productivity, but to shape the new rules of the global business game.
  • For business leaders, the path is clear: invest, align, and innovate—or risk falling behind in the AI-powered economy.

As artificial intelligence cements its place in the engine rooms of global business, GCC nations are racing ahead, transforming optimism into tangible performance gains.

According to Boston Consulting Group’s report, “From Pilots to Progress: AI at Work in the GCC,” the region has not only climbed to second place globally in AI adoption for 2025, but has also developed a culture of confidence and leadership support that outstrips the world’s averages.

For policymakers and business leaders across Kuwait, Qatar, Saudi Arabia, and the UAE, the signals are loud and clear: the GCC is harnessing AI, not just as a technical tool, but as a strategic lever for economic diversification and digital transformation.

In 2025, 58 per cent of GCC professionals expressed optimism about AI (9 percentage points up from the previous year), with 45 per cent reporting confidence—figures that surpass global norms and reflect a culture hungry for progress.

Dr. Lars Littig, Managing Director and Partner at BCG, credits not only new technology, but the region’s distinctive leadership approach:

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“The GCC is emerging as a global leader in AI deployment, with high frontline adoption and leadership support nearly twice the global average. For companies and public sector entities alike, this signals a clear mandate: strategic investment in AI, paired with strong leadership and training, offers a blueprint for enterprise-wide transformation.”

Widespread adoption

The study, conducted jointly with BCG X, surveyed everyone from C-suite decision makers to shop-floor staff. Results show that AI has broken out of pilot mode and into regular use:

  • 78 per cent of frontline employees use generative AI frequently (27 points above global rates)
  • 90 per cent of managers and 92 per cent of leaders are incorporating AI into their daily work, versus 78 per cent and 88 per cent globally

Such widespread adoption reflects not only enthusiasm but also clear strategic alignment with national economic visions.

New compliance risks

Training quality is another differentiator: 45 per cent of GCC employees find their AI education satisfactory, better than the 36 per cent global average. Further, 54 per cent of frontline staff say leaders provide clear AI guidance (double the global rate), signaling strong top-down alignment.

However, this proactive culture comes with a warning: shadow AI use is more common, with 63 per cent of workers saying they’d use unauthorized AI tools—again, higher than world averages—underscoring the need for robust compliance frameworks as AI becomes ubiquitous.

Productivity and innovation

Perhaps most compelling for business decision-makers are the clear productivity gains. Over half of respondents save more than an hour daily with AI, time now reinvested in:

  • Tackling additional work (58 per cent)
  • Strategic projects (38 per cent)
  • Improving output speed and quality (58 per cent)
  • Professional development (38 per cent)
  • Experimentation, collaboration, and even well-being activities

Yet, only half of employees report receiving guidance on how to best use this saved time—a missed opportunity to fully capitalise on AI’s potential contributions.

What lies ahead for the GCC? The study highlights two coming shifts: the rise of agentic AI—systems that operate independently to manage complex tasks—and the dawn of novel business models where AI is a source not just of efficiency, but of new revenue and competitive differentiation.

 “AI is already a powerful driver of performance, deeply embedded in team workflows. In the GCC, employees are saving, and reinvesting, hours every day—a compelling case for businesses to scale responsibly for sustainable growth and talent development,” Rami Mourtada, BCG Partner and Director, said.

Simplifying nano-LED manufacturing for next-gen devices

Naushad K. Cherrayil
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Simplifying nano-LED manufacturing for next-gen devices
  • Opens new doors in not only display technology but also optical communications and medical imaging.
  • Simplified process not only reduces manufacturing complexity but also offers a path to significant cost savings.

As the race to create smaller, more powerful wearable technology intensifies, manufacturers face an unexpected challenge: the humble LED. LEDs, or light-emitting diodes, are the backbone of near-eye displays in burgeoning markets like augmented reality (AR) headsets and smart glasses.

But as these devices shrink, so must their components—and that’s where conventional LED technology has hit a wall.

Traditional LEDs require two electrical contacts, complicating the already delicate process of scaling down for high-density applications. For device makers, aligning hundreds of miniature components to both positive and negative contacts is a formidable manufacturing headache. The situation has threatened to slow progress just as consumer and enterprise demand for compact, immersive devices is peaking.

A team of scientists from Nanjing University, whose recent breakthrough, could change the equation for electronics manufacturers worldwide. By powering LEDs with alternating current (AC) instead of the standard direct current (DC), they’ve demonstrated a way to use just a single contact per nano-LED.

“Using AC was absolutely essential for our design,” said lead researcher Tao Tao. “It allowed us to explore a new regime of LED behaviour.”

Improved quantum efficiency

For the business world, the implications are clear. The simplified process not only reduces manufacturing complexity but also offers a path to significant cost savings. With fewer alignment steps and the potential for automating assembly, manufacturers can push toward higher production yields and faster time-to-market—critical factors in the fiercely competitive display sector.

The research team didn’t stop at theory. They engineered a prototype using layered semiconductor materials and etched ultra-smooth, defect-free nanorods, each just 300 nanometers thick. This precision manufacturing translated into improved quantum efficiency—the key to brighter, more energy-efficient displays.

What sets this technology apart is the ability to tune device performance by simply adjusting AC frequency, a flexibility that opens new doors in not only display technology but also optical communications and medical imaging.

For example, by raising the operating frequency beyond the range of human perception, manufacturers can eliminate distracting flicker in AR glasses—a crucial edge as tech giants race for dominance in the wearable market.

“The potential payoff is devices that are smaller, more efficient, and deliver visual experiences that are a leap beyond what we have today,” Dr. Tao said.

For manufacturers and investors eyeing the next wave of consumer technology, this could mark a pivotal step toward smarter, sleeker, and more commercially viable products. The business of making things smaller just got a little easier—and a lot more exciting.

White House to withhold Nvidia Blackwell AI chips to China

Ana Mary Joseph
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White House to withhold Nvidia Blackwell AI chips to China

The White House announced that the Trump administration will not permit Nvidia Corp to sell its highly advanced Blackwell AI chips to China at this time, putting a firm halt to any potential deal involving the in-demand semiconductor.

White House spokeswoman Karoline Leavitt stated during a press briefing, “As for the most advanced chips, the Blackwell chip, that’s not something we’re interested in selling to China at this time.”

Her remarks reinforce recent statements from President Donald Trump, who said on Sunday that the world’s most sophisticated semiconductors should be reserved for American companies, foreclosing the prospect of exporting such technology to China or other foreign entities.

Policy battle

The decision follows months of speculation about whether the administration would allow Nvidia to export a scaled-down version of the Blackwell chip to China.

In August, President Trump had indicated he might consider limited sales, raising questions about the future of US-China collaboration in advanced artificial intelligence technologies. However, Trump clarified this week that no such discussions occurred during his summit with Chinese President Xi Jinping in South Korea last week.

Nvidia, the world’s most valuable chipmaker, relies heavily on US government export controls in determining global sales strategy. The administration’s position underscores continuing tensions over technology transfer and national security between the United States and China, with advanced semiconductors at the centre of the policy battle.

Apple eyes low-cost laptop to rival Chromebook and Windows PCs

Mohammed Fahad
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Apple eyes low-cost laptop to rival Chromebook and Windows PCs
  • Apple’s initiative arrives as the company seeks to lure customers who might otherwise choose Chromebooks, Windows PCs, or even iPads, presenting an affordable option for those requiring basic productivity and web browsing capabilities.

Apple is preparing to launch its first budget Mac laptop, targeting students, businesses, and price-conscious consumers.

The new device, internally codenamed “J700,” is expected to debut in the first half of 2026 and is designed to compete directly with Google’s Chromebooks and entry-level Windows notebooks.

Sources familiar with the matter indicate the budget Mac will be priced “well under” $1,000—a significant move for Apple, whose Mac laptops have long occupied the premium segment.

The current entry−level MacBook, the M4 MacBook Air, starts at $999, or $899 with a student discount.

In testing phase

The new laptop is expected to feature a lower-cost LCD display slightly smaller than the current 13.6-inch minimum, and, notably, will run on an iPhone processor rather than a Mac-specific chip. This mark the first time Apple will equip a Mac with a smartphone processor, which, according to internal tests, can outperform the M1 chip used in recent MacBooks.

Apple’s initiative arrives as the company seeks to lure customers who might otherwise choose Chromebooks, Windows PCs, or even iPads, presenting an affordable option for those requiring basic productivity and web browsing capabilities. The device is currently in active testing at Apple and has entered early production with overseas suppliers.

Apple’s Mac division reported $8.73 billion in Q4 sales, narrowly topping analyst forecasts. The forthcoming budget Mac may help the company defend and expand its market share in the education and enterprise sectors, amid intensifying competition from lower-priced rivals.

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