Last September, Cupertino-based giant Apple announced a year of extension to use Qualcomm 5G modems until March 2026. The latest announcement comes on Wednesday according to which, Apple has exercised its unilateral option to extend the global patent license agreement until March 2027.
Qualcomm announced the deal at its Q1 earnings call earlier on Wednesday where it reported both revenue and net income surpassing its earlier estimates at $9.92 billion and $2.77 billion, respectively.
Apple and Qualcomm extended their 5G modems patent agreement to use on iPhones back in September 2023 which would’ve initially covered till 2026. The latest announcement takes it till 2027 meanwhile Apple is working on a custom-made 5G modem for iPhones.
Apple purchased Intel’s modem business in 2019 and has since been working on a custom-made 5G modem. Doing so would incentivize Apple as it can control the supply chain, however, it is facing hurdles causing the deadline to be pushed further. We have heard that Apple has likely scrapped the entire project following various failures to keep up with what Qualcomm and its rivals are building.
Qualcomm understands how Apple’s 5G modems could cause the chipmaker significant setbacks, although it seems the extension in the patent is likely a signal that Apple isn’t expecting to accomplish its goal to develop custom modems too soon.
It is also to be noted that Apple usually sticks to multiple sourcing strategies such as Samsung Display, LG Display, and BOE for iPhone displays. Thus, we could see Qualcomm and Apple’s 5G modems pitting against each other in the future although take this with a pinch of salt at the moment.
