Qualcomm will continue to supply 5G modems for use in Apple iPhones through 2026

Qualcomm will continue to supply smartphone 5G modems to Apple until at least 2026. The chip designer reported this on Monday. Apple has been working on its own 5G modems for years, but it is not known when the tech giant will use them in its products.

Qualcomm says in a press release that it will supply Snapdragon 5G modems to Apple in 2024, 2025 and 2026. These will be used for Apple smartphones that will be released in those years. Qualcomm and Apple already signed a deal in 2019, with which the chipmaker would supply 5G modems to Apple. That deal was set to expire this year.

The two companies have therefore concluded a new deal, with which Qualcomm will continue to supply 5G chips for phones to the tech giant for the next three years. The two companies do not report the amount involved in the agreement. According to Qualcomm, the value of the deal is “comparable” to the previous agreement.

Apple has been working on its own 5G modems for years. The company acquired Intel’s 5G division for a billion dollars in 2020. However, it is not known when Apple plans to use its own chips in its iPhones. According to previous rumors, Apple wants to make that switch from 2025.

Qualcomm says it expects to supply twenty percent of the 5G chips that Apple needs for that year’s iPhones in 2026. This seems to indicate that Apple’s customer base will decline over time. According to Reuters, Qualcomm had a similar provision in its previous deal with Apple, although all of Apple’s current iPhones to date have used Qualcomm’s 5G modems.

Apple also has a patent agreement with Qualcomm; according to the two companies, this remains unchanged. This agreement was concluded in 2019 after a long series of lawsuits between the two parties. The agreement runs until 2025, but can be extended for another two years.

Source: Qualcomm