Apple signs chip deal with Qualcomm


The announcement comes just one day before the unveiling of Apple’s new iPhone 15 

Qualcomm confirmed on Monday that is has signed a deal with Apple to supply them with 5G chips for smartphone launches until 2026.  

The deal is a renewal of a modem supply agreement signed between the two firms, that was set to expire this year. Under the terms of the deal, which Qualcomm noted are “similar” to the last, Qualcomm will supply Apple with Snapdragon 5G Modem‑RF Systems for smartphone launches until 2026. 

The renewal could suggest that Apple is experiencing delays with the in-house production of its 5G modems. In July 2019, Apple announced the acquisition of Intel’s smartphone modem business, in a transaction worth over $1 billion. This was just months after Apple settled its patent battle with Qualcomm, so the company’s modem production plans have long been in the public domain. Apple began the transition from Intel processors to Apple silicon in Mac computers in late 2020.  

Qualcomm announced in its press release that executives expect to have just a 20% share of modems in the 2026 phone models, which suggests this could be the target for Apple to begin installing its own modems.  

Financial details of the deal have not been disclosed.

Upon the news, Qualcomm shares were up 4%, and Apple’s 0.5%. 

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