Qualcomm's satellite texting plan is dead
Qualcomm's satellite texting plan is dead

Apple will keep using Qualcomm’s 5G tech in iPhones until at least 2026

What To Know

  • while the company has made remarkable strides in ramping up its chipset manufacturing capabilities and reducing its reliance on Intel, it has yet to achieve the same level of self-sufficiency in the realm of 5G radios.
  • Nevertheless, Qualcomm’s move suggests a degree of confidence in Apple’s ability to eventually attain self-sufficiency in manufacturing its own 5G radios at a substantial scale.
  • The timing of this latest agreement between Apple and Qualcomm suggests that it has been in the works for quite some time.
  • While Apple’s journey towards manufacturing its own modems is in progress, it is evident that there is still work to be done to achieve full self-sufficiency in this critical aspect of iPhone production.

On the brink of Apple’s highly anticipated autumn iPhone event, Qualcomm has made a significant announcement. The tech giant has revealed its commitment to supplying 5G smartphone modems to Apple until the year 2026.

This revelation sheds light on a crucial aspect of Apple’s operations: while the company has made remarkable strides in ramping up its chipset manufacturing capabilities and reducing its reliance on Intel, it has yet to achieve the same level of self-sufficiency in the realm of 5G radios.

Nevertheless, Qualcomm’s move suggests a degree of confidence in Apple’s ability to eventually attain self-sufficiency in manufacturing its own 5G radios at a substantial scale.

Qualcomm’s projection indicates that it anticipates providing only approximately 20 percent of the components required for Apple’s 2026 iPhones. For some time now, Apple has been making clear its intentions to bring more of the iPhone supply chain in-house and develop its own modems.

This initiative began when Apple acquired Intel’s mobile modem business for a staggering $1 billion approximately four years ago. This strategic acquisition not only provided Apple with valuable patents but also brought on board a team of highly knowledgeable experts, as reported by The Wall Street Journal.

Qualcomm Shares Gain on News it Will Supply 5G Modems for Apple iPhones Into 2026

Despite these ambitious plans, it appears that Apple’s vision of manufacturing its own smartphone modems at a large scale has not yet materialized. The recent announcement of Qualcomm’s continued involvement in supplying 5G smartphone modems to Apple underscores this fact.

It’s worth noting, however, that this development does not impact the existing patent license agreement between the two tech giants, which has been in effect since 2019. This agreement has a stipulated term of six years, with the option to extend it for an additional two years.

The timing of this latest agreement between Apple and Qualcomm suggests that it has been in the works for quite some time. This is particularly noteworthy as new iPhones equipped with Qualcomm modems are set to hit the shelves in the coming days.

In summary, Qualcomm’s commitment to providing 5G smartphone modems to Apple until 2026 highlights the tech giant’s ongoing efforts to reduce its reliance on external suppliers.

While Apple’s journey towards manufacturing its own modems is in progress, it is evident that there is still work to be done to achieve full self-sufficiency in this critical aspect of iPhone production.