Qualcomm and Apple have reached a new agreement on 5G chips

Apple products

Qualcomm has extended its agreement to provide 5G modems for Apple’s smartphones. Since 2018, Apple has been trying to manufacture its own modems, responsible for managing communication between its iPhones and cellular mobile networks. This has been seen as an extension of its substantial investment in creating more of its semiconductor components internally, reducing dependence on external suppliers.

 Qualcomm announced that it will provide Apple with chips for its smartphone releases in 2024, 2025, and 2026. While the specific details of the agreement were not disclosed, Qualcomm stated that the terms closely resembled the initial deal reached in 2019.

“This agreement reinforces Qualcomm’s record of sustained leadership across 5G technologies and products,” the chipmaker said.

Apple stands as Qualcomm’s most significant customer, contributing to nearly 25 percent of its revenue. Qualcomm had anticipated that the iPhone 15 would be one of the final models to still depend on its modems. 

Qualcomm stated that its long-term financial planning was to provide a 20 percent share of the relevant chips for smartphone launches in 2026.

Apple’s internal chip development project, known as Apple Silicon, has consistently delivered impressive results for several years, particularly in enhancing the core processors of the iPhone. In a more recent development, Apple has successfully transitioned these chips for use in its Mac computers, replacing Intel as the primary processing powerhouse for its desktop and laptop systems.

In May of this year, Apple has also entered into a multiyear, multibillion-dollar agreement with Broadcom, involving various 5G components.

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