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Apple & Qualcomm Extend Modem Contract as Apple’s Custom 5G Modem is Delayed

Apple has agreed to use Qualcomm modems for the next three years, as it appears that work on the Cupertino firm’s in-house custom 5G modem chip is taking longer than had been expected, according to a Bloomberg report.

Apple is Qualcomm’s biggest client, accounting for almost 25% of the supplier’s revenue. In a statement, Qualcomm said that the deal with Apple covers “smartphone launches in 2024, 2025 and 2026.” The agreement was originally set to expire this year and the iPhone 15 lineup has been expected to be the last to use Qualcomm modems.

Apple in July 2019 purchased the majority of Intel’s smartphone modem business. The transaction was valued at $1 billion Apple said at the time that the purchase will “help expedite our development on future products and allow Apple to further differentiate moving forward.”

The time frame for launching the modem has slipped from 2023 to 2024 or 2025, but Bloomberg now believes it has an even “longer runway” before it will be ready.

Chris Hauk

Chris is a Senior Editor at Mactrast. He lives somewhere in the deep Southern part of America, and yes, he has to pump in both sunshine and the Internet.