Apple 5G Modem: New deal between Qualcomm and Apple, will now supply 5G chip till 2026
Apple 5G Modem: Qualcomm also said the patent licensing deal it signed with Apple in 2019 stands. That deal expires in 2025 but companies have the option to extend it for two years. Under the deal announced Monday, Qualcomm said it will supply chips to Apple for phones it produces every year through 2026.
Qualcomm (QCOM.O) said on Monday it has signed a new deal with Apple (AAPL.O) to supply 5G chips to the iPhone maker until at least 2026. Qualcomm, whose shares rose more than 8% in premarket trading. are the leading designers of modem chips that connect phones to mobile data networks. Let us tell you about this news in more detail.
The San Diego, California-based firm had earlier signed a supply agreement with Apple in 2019 after the two companies settled a lengthy legal battle. That chip supply agreement expires this year, which means the iPhones announced by Apple on Tuesday will be the last phones under that agreement. Under the deal announced Monday, Qualcomm said it will supply chips to Apple for phones it produces every year through 2026.
Qualcomm also said the patent licensing deal it signed with Apple in 2019 stands. That deal expires in 2025, but the companies have the option to extend it for two years. Apple is working on its own modem technology and spent $1 billion to buy Intel's (INTC.O) modem unit in 2019.
Qualcomm said Tuesday that its financial projections assume that only a fifth of Apple's iPhones will use its chips by 2026.
