Qualcomm extends iPhone chipset deal

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  • September 11, 2023
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It seems possible that Apple will still rely on Qualcomm modem chips for several generations of iPhones to come. On Monday, Qualcomm announced that the two companies have extended their modem chip supply agreement (which was set to expire this year) through 2026, suggesting that Apple faces additional delays in developing its own modem chips for 5G networks.

No specific iPhone models were mentioned, although Qualcomm stated that the new agreement would include “smartphone launches in 2024, 2025, and 2026.” Allegedly Mark Gorman The journalist from Bloomberg said that this does not mean that we will not see a custom chip from Apple in the next three years, as the company was planning a gradual launch of the new component. By 2026, Qualcomm is expected to supply 20 percent of the modem chips used in Apple phones, which is exactly the level it expected in 2023 when the original agreement was signed in 2019.

Apple has been developing a custom 5G modem chip for some time. The company purchased the “bulk portion” of Intel’s smartphone modem business just three months after settling a lawsuit with Qualcomm over patent licensing practices in 2019, and has been in talks with chipmaker giant Taiwan Semiconductor (TSMC) to produce modems. iPhone 5G in 2021.

In this case, what makes matters worse is that Huawei has surpassed Huawei in producing local 5G technology, as the new Mate 60 phone is claimed to be powered by a Kirin 9000s chip made in China despite the strict restrictions imposed by the United States on… Exporting advanced chip manufacturing tools to Huawei.

It is difficult to accurately determine the impact of the agreement on future iPhone prices, as the price of phones is affected by multiple factors including the cost of components, development and production costs, in addition to market and competitive factors.

However, Apple’s continued reliance on Qualcomm’s modem chips may result in current modem costs continuing and not increasing significantly. This could ultimately stabilize or reduce iPhone price increases in the future.

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