Qualcomm And Apple Extend Deal For 5G iPhone Chips

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Apple has extended a deal with chipset-making giant Qualcomm for three more years and the latter will provide 5G communication chips to the iPhone maker. The previous deal between the two brands was set to expire later this year. The extension of the agreement is a sign that Apple’s efforts to make in-house chips is yet to bear fruit, the media has reported. Santa Clara, California-headquartered Qualcomm has announced it would supply Apple with the modem chips for smartphone launches in 2024, 2025 and 2026, said a report by The Wall Street Journal.

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Keeping iPhone business for a couple of more years will help the chipset-making giant’s diversification plan, the report noted.

This development comes after reports were speculating that Apple will move to its own in-house 5G modem solution by 2025. The chipset maker said the agreement “reinforces Qualcomm’s track record of sustained leadership across 5G technologies and products”. Apple will continue to use Qualcomm 5G modems for at least three more years now with the new agreement between the two companies.

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Cupertino-based Apple is Qualcomm’s biggest customer, accounting for nearly a quarter of the chipmaker’s revenue.

To recall, earlier in March, a report by CNBC said that iPhones may not come with Apple’s own modems next year. Apple had acquired Intel’s modem business in 2019 and there had been speculation it would begin using in-house parts in 2023. Last year’s iPhone 14 models come equipped with Qualcomm modems, but the chip-making giant has been mulling go solo in the wireless connectivity market since quite a while. However, its efforts has not yielded results.

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