Apple has entered into a new agreement with Qualcomm that will see the chipmaker supply Apple with 5G modems until 2026. This is not the first time Apple and Qualcomm have partnered on 5G modems. Back in 2019, the two companies settled their disputes over patents and Qualcomm’s royalty system, paving the way for Apple to access Snapdragon 5G modems.
Initially, Apple had turned to Intel to develop a 5G modem chip, but the results were not promising. Facing desperation, Apple reached a settlement with Qualcomm during their patent trial, which granted Apple access to Snapdragon 5G modems.
Under the new agreement, Qualcomm will supply Apple with its Snapdragon 5G Modem-RF Systems for smartphone launches in 2024, 2025, and 2026. There is a possibility that Apple may introduce its own 5G modem chip for the Pro models in those years, while relying on Qualcomm for the non-Pro iPhone models. Rumors suggest that Apple may start deploying its own 5G modem chips with the iPhone 17 line in 2025, indicating a potential backup plan.
Investors have reacted positively to this news, with Qualcomm shares rising by 4.11% to $110.50. This agreement reinforces Qualcomm’s position as a leader in 5G technologies and products. The current deal between Apple and Qualcomm is set to expire later this year.
