Qualcomm recently renewed its global licensing agreement with Apple, ensuring the chip company will maintain some revenue from the iPhone maker. This new agreement will come into effect on the 1st April 2027.
“We are pleased to extend the Apple license agreement,” stated John Han, EVP and General Manager of Qualcomm Technology Licensing.
The short statement did not say how long the agreement will last, but in the face of declining chipset sales for smartphones, it is good news for Qualcomm.
Bloomberg reported Apple is Qualcomm biggest customer, accounting for more than a fifth of the chipmaker’s revenue. Both Apple and Qualcomm are grappling with issues related to a global shortage of memory chips.
Apple is making a concerted effort to use its own in-house silicon across its devices. The company’s iPhone Duo and 18 Pro smartphones both feature the company’s custom in-house C2 cellular modem while the 18 Pro Max uses a Qualcomm Snapdragon 5G modem in the US.
In its most recent results, Qualcomm stated its handset chip sales dropped 20% to $5.1 billion, which CEO Cristiano Amon attributed to a bottoming out in the China market after OEMs pulled back on orders amid memory supply uncertainty.
Analyst view
Paolo Pescatore, Chief Analyst at PP Foresight, told Mobile World Live the arrangement is hugely significant for Qualcomm and noted it “underlines the enduring value of its vast patent portfolio”.
“Apple may be steadily reducing its reliance on Qualcomm hardware as it develops more of its own modem technology, but it still needs access to Qualcomm’s fundamental wireless intellectual property”, he said. “For Apple, it removes a potentially significant area of uncertainty as it takes greater control of the underlying technology inside its devices”.
“Crucially, this should not be interpreted as Apple stepping back from its own modem ambitions. Licensing Qualcomm’s patents and buying Qualcomm chips are two very different things”, he added.
Source: Mobile World Live
Image Credit: Qualcomm & Apple
Source: Tahawul Tech