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Apple iPhones to continue using Qualcomm 5G modems till 2026

Qualcomm 5G modems

Qualcomm 5G modems – Qualcomm has confirmed that it will continue to supply 5G chips to Apple until at least 2026. This strategic move comes as Apple faces greater obstacles in the Chinese market. This agreement will assist the American technology behemoth in fortifying its global supply chain operations.

Qualcomm announced the new arrangement on Monday. The three-year arrangement demonstrates that Apple is still prepared to source certain silicon from rival chip makers. The move outperforms expectations by securing Qualcomm as Apple’s processor supplier for another three years. This is a strong indicator that, while moving its computers to Apple-designed Apple silicon, Apple is not speeding up the introduction of its own modem.   

Qualcomm stock rose 4% following the announcement. In the meantime, Apple’s stock increased by 0.5%. The market capitalization of the tech company plummeted following news of a ban on iPhones for government workers.   

Qualcomm, based in San Diego, California, previously signed a chip supply arrangement with Apple in 2019, following the end of a lengthy legal struggle between the two tech titans. This current supply agreement is slated to expire this year, making the next iPhone launch the model that will employ Qualcomm modems under that agreement. 

Qualcomm 5G modems

Qualcomm is set to supply Apple with semiconductors for its annual phone releases until 2026, according to the agreement. While the deal’s financial details were not published, Qualcomm indicated that the terms are “similar” to their previous agreement. 

Apple has yet to respond officially on this development. According to Reuters, UBS analysts forecast in an August 3rd research note that Qualcomm’s semiconductor sales to Apple in 2022 would total an astonishing $7.26 billion.