Qualcomm Announces Renewed Deal With Apple for 5G Modems

Ian King and Mark Gurman, reporting for Bloomberg:

Apple Inc. is extending an agreement to get modem semiconductors from Qualcomm Inc. for three more years, a sign that its ambitious effort to design the chips in-house is taking longer than expected. Qualcomm shares surged on the news.

The new pact will cover “smartphone launches in 2024, 2025 and 2026,” Qualcomm said in a statement Monday. The companies’ agreement had been set to end this year, and the latest iPhone — due on Tuesday — was expected to be one of the last to rely on the Qualcomm modem chip. […]

“This agreement reinforces Qualcomm’s track record of sustained leadership across 5G technologies and products,” the San Diego-based chipmaker said. Though the financial terms of the new deal weren’t disclosed, Qualcomm said it was similar to the previous arrangement signed in 2019.

Funny how they announced this today, and even funnier that there’s no quote from anyone at Apple. Qualcomm, seemingly, has Apple over the barrel on these 5G modems.

Update: Keep in mind that Apple has been trying to build its own 5G modems for years now. Back in 2019 they bought Intel’s modem business — the same year they settled (effectively, losing) a lawsuit with Qualcomm. And then there was this story over the summer, where Apple accused Qualcomm of harassing Apple executives by subpoenaing them for a lawsuit filed by the FTC. These two companies do not like each other.

Monday, 11 September 2023