Qualcomm Extends Contract with Apple

Qualcomm, the longtime semiconductor supplier for Apple, has extended its current contract to provide 5G modems for Apple's upcoming iPhones.

Modems are the devices in smartphones that allow them to connect to various cellular networks. Apple has for some time now been trying to bring the manufacturing of modems in-house since 2019 and eliminate the necessity for third-party intervention. Apple furthered this effort when it purchased Intel’s smartphone chip manufacturing business for $1 billion but has since then made little progress in creating an independent supply chain.

Apple has been Qualcomm’s biggest customer with Apple providing nearly 25% of Qualcomm’s total revenue. Qualcomm expected the release of the iPhone 15 to be the last device that the company would be providing chips for but due to Apple's failure to secure its own chip manufacturing capabilities Qualcomm now expects to be providing relevant chips to Apple until 2026.

Source: Financial Times