Apple has decided to extend its partnership with Qualcomm on 5G modems for smartphones until at least 2026. The move suggests that while Apple has made significant strides in chipset manufacturing, it has not been able to replicate this success in 5G modem production.
However, Qualcomm expects that by 2026 Apple will be able to produce its own 5G modems, as the company expects to supply only about 20% of the components needed to produce the 2026 iPhone line.
Apple’s intention to develop its own modems and further internalize the iPhone supply chain has been evident for some time. Four years ago, Apple acquired Intel’s mobile modem business for $1 billion, gaining access to valuable patents and expertise. However, Apple’s plans to produce its own smartphone modems on a large scale have not yet materialized.
The latter agreement has nothing to do with the patent and license agreement between the companies, which has been in effect since 2019. This agreement is for six years with a two-year extension option. The latest agreement between the two parties has likely been in the works for some time, given that new iPhones with Qualcomm modems will be hitting store shelves in the coming days.
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