Apple prolongs agreement with Qualcomm for 5G modems until 2027
Apple stated last year that it will prolong its arrangement with Qualcomm to keep utilising the company’s 5G modems until 2026. Nevertheless, as Apple’s efforts to develop its own modems have been hindered, it will persist in utilising Qualcomm’s modems in the iPhone until at least 2027.
Apple plans to maintain its use of Qualcomm 5G modems until 2027.
The information was verified by Qualcomm CEO Cristiano Amon in the company’s report for the first fiscal quarter of 2024. As per Amon, Qualcomm plans to keep licencing its 5G modems to Apple until March 2027. In the past, the agreement has already been prolonged until 2026. He also informed CNBC that he is satisfied with the partnership with Apple.
Apple has not yet provided any comment on the extended agreement with Qualcomm. Nevertheless, the news isn’t unexpected.
The business has been attempting to create its own 5G modems to substitute Qualcomm’s for a long time. In 2019, Apple purchased Intel’s modem section in a $1 billion agreement. The purchase provided Apple with over 17,000 patents and more than 2,200 workers from Intel. Nevertheless, all of these endeavours were insufficient to assist the corporation situated in Cupertino.
A Bloomberg story last year disclosed that the progress of Apple’s 5G modems has been a challenging experience for the company’s engineers and executives. As per those knowledgeable with the situation, the test models have not been able to surpass Qualcomm’s modems in terms of performance and efficiency.
The original aim was to provide the first smartphones with in-house 5G modems this year. Nevertheless, the two extensions of the contract with Qualcomm indicate that Apple is still a long way from delivering its initial 5G modem. It is important to mention that Qualcomm also supplies the satellite communication module for iPhone 14 and iPhone 15 models.
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