Tue. Sep 26th, 2023
Qualcomm to Provide Apple with 5G Modems Through 2026

On the eve of Apple’s fall iPhone event, Qualcomm has announced that it will continue to supply the company with 5G smartphone modems until 2026. While Apple has made strides in manufacturing its own chipsets and reduced its reliance on Intel, it has not been able to do the same with 5G radios. However, Qualcomm is optimistic that Apple will eventually be able to manufacture its own 5G radios at a larger scale.

Apple has long been planning to build its own modems and bring more of the iPhone supply chain in-house. The company acquired Intel’s mobile modem business for $1 billion in 2019, acquiring valuable patents and skilled staff in the process. Despite these efforts, Apple has not yet been successful in manufacturing its own smartphone modems on a large scale.

This new agreement between Qualcomm and Apple does not impact the existing patent license agreement between the two companies, which has been in effect since 2019. The current agreement has a six-year term with the option to extend it by two years. It is likely that the latest accord has been in development for some time, especially considering that new iPhones equipped with Qualcomm modems will be released in the near future.

Qualcomm expects to supply only around 20 percent of the components required for Apple’s 2026 iPhones, indicating Apple’s intention to further reduce its dependence on third-party suppliers and strengthen its control over its supply chain. The collaboration between Qualcomm and Apple highlights the importance of 5G technology in the smartphone market and the efforts of major companies to establish themselves in this competitive space.