Qualcomm And Apple Extend 5G Modem Deal Until 2026

Apple will continue to use Qualcomm 5G modems for at least three more years thanks to a new agreement between the two companies announced today. The new agreement will cover iPhones launched in 2024, 2025 and 2026, while the previous agreement was due to expire later this year. This news comes after several reports that Apple will move to its own 5G modem solution by 2025.

The chip supply agreement expires this year, meaning the new iPhone models Apple is expected to announce on Tuesday will be the final debut under that agreement.

As part of the deal announced Monday, Qualcomm said it will supply Apple with smartphone chips that will be released every year until 2026. Qualcomm did not disclose the value of the deal, saying only that the terms were “similar” to its previous agreement.

Qualcomm also said the patent licensing agreement it signed with Apple in 2019 remains in effect. The agreement expires in 2025, but companies have the option to extend it for another two years.

Apple is working on its own modem technology and in 2019 spent $1 billion to purchase the Intel division needed for this purpose. Apple hasn’t said how fast it plans to ramp up the use of its own chips.

Qualcomm recently said its financial forecasts suggest that by 2026, only a fifth of Apple’s iPhones will use its chips.