Qualcomm also makes money from Apple as a result of a lawsuit over royalties that was settled in 2019
Qualcomm this week announced that it will supply Apple with 5G modems for smartphones through 2026, despite previous suggestions that Apple would likely begin using an internally developed 5G modem next year.
Apple has been working in recent years to move away from using Qualcomm 5G modems for its iPhones and instead produce them in-house, with moves like purchasing Intel’s smartphone modem division in 2019. However, such plans have yet to come to fruition, likely due to how complex these components are.
Apple’s decision to stick with Qualcomm for three more years is, of course, welcome news for the chipmaker and its handsets business, particularly because that company has been facing notable market struggles lately, as reported recently by Bloomberg.
Qualcomm also makes money as a result of a lawsuit between the two companies over royalties that was settled in 2019. Per the settlement, Qualcomm continues to collect royalties from Apple for cellular licensing fees under a six-year agreement.
The most current iPhone on the market, the iPhone 14 Pro and iPhone 14 Pro Max, feature Qualcomm’s Snapdragon X65 modem, which the chipmaker says enables faster 5G speeds, lower power consumption and improved mmWave support on the U.S. models. The latest iPhone, the iPhone 15, will be announced today at Apple’s “Wonderlust” event, and is expected to sport Qualcomm modems.
