In a recent interview with CNBC, Qualcomm CEO Cristiano Amon confirmed that Apple has extended its patent license agreement for 5G modems with Qualcomm until March 2027.
Despite Apple’s efforts to develop in-house modems, the extension suggests ongoing reliance on Qualcomm for this crucial iPhone component. This extension comes after Apple’s previous agreement, which was set to expire in 2026.
The decision highlights Apple’s commitment to leveraging Qualcomm’s 5G technology in its devices, ensuring continued access to cutting-edge modem capabilities.
While Apple continues efforts to develop an in-house 5G modem chip, the extension underscores the complexities and delays in achieving this goal. With Apple’s initial target to debut its proprietary modem in 2024 delayed, the extension with Qualcomm ensures a seamless transition for iPhones, maintaining Qualcomm’s cutting-edge technology in the upcoming iPhone 16 Pro models slated for 2024.
This extension, spanning an additional two years, solidifies the enduring collaboration between the tech giants, ensuring that Qualcomm’s advanced modems will feature in forthcoming iPhone generations.
In an also not surprising development, on the @Qualcomm call, it was mentioned:
— Ben Bajarin (@BenBajarin) January 31, 2024
"Apple exercised its unilateral option to extend its global patent license agreement for an additional two years, taking the existing agreement through to March 2027"
Summary
Agreement Extension:
- Apple has extended its 5G modem agreement with Qualcomm until March 2027.
- Qualcomm CEO Cristiano Amon confirmed the extension in an interview with CNBC.
Previous Agreements:
- Last year, Apple had extended the agreement to use Qualcomm’s 5G modems until 2026.
- The recent extension indicates a further commitment to Qualcomm’s technology.
Apple’s In-House Modem Development:
- Apple has been working on in-house modems since 2019, acquiring the majority of Intel’s smartphone modem business.
- Reports suggest Apple faced challenges in developing its 5G modem, leading to a shift in focus towards 6G while continuing work on the 5G modem.
Challenges in In-House Development:
- Allegations include unrealistic goals, inadequate understanding of challenges, and unusable prototypes hindering Apple’s in-house 5G modem chip production.
Bloomberg’s Report:
- Bloomberg’s Mark Gurman reported Apple’s emphasis on completing its in-house modem to avoid extending the contract with Qualcomm.
- Mention of historical feuds between Apple and Qualcomm, with Apple reluctant to rely on Qualcomm for a crucial iPhone component.
Apple’s Silence:
- Apple has not commented on the deal with Qualcomm.
- The extension suggests that Apple’s efforts to produce in-house modem chips might be facing further obstacles.
Business Implications:
- The extension implies a continued business relationship between Apple and Qualcomm, impacting Apple’s pursuit of self-reliance in modem chip production.