As of at least 2026, Qualcomm has extended its agreement with Apple to continue supplying 5G chips. This tactical step has been made as Apple faces more difficult circumstances in the Chinese market. The American IT giant will be able to strengthen its supply chain operations globally thanks to this deal.
In-depth details about Apple iPhones will use Qualcomm 5G modems
On Monday, Qualcomm disclosed the expanded arrangement. The three-year arrangement demonstrates Apple’s continued willingness to purchase certain silicon from rival chip manufacturers. By securing Qualcomm’s role as Apple’s chip supplier for a further three years, the action goes above and beyond early expectations. This is a strong hint that despite switching its computers over to Apple Silicon produced in-house, Apple is not speeding up the introduction of its own modem.
Following the release, Qualcomm stock rose by 4%. While this was happening, Apple’s stock only rose 0.5%. Following news of an iPhone ban for government personnel, the market value of the tech giant significantly declined.
In 2019, Qualcomm, a San Diego, California-based company, and Apple signed a chip supply agreement as a result of the end of a protracted legal conflict between the two tech heavyweights. This year will mark the end of the current supply agreement, therefore the forthcoming iPhone launch will be the final model to utilize Qualcomm modems under that contract.
Qualcomm is expected to supply Apple with CPUs for their yearly phone releases through 2026, per the agreement. Although the deal’s precise financial parameters were not made public, Qualcomm said that the terms are “similar” to their prior arrangement.
Apple has not yet provided a formal reaction to this development. However, according to a report by Reuters, UBS analysts projected Qualcomm’s semiconductor sales to Apple in 2022 to reach an astonishing $7.26 billion in a research note dated August 3.
