Qualcomm announced today that it will provide Snapdragon 5G Modem-RF Systems for products Apple will introduce in 2024, 2025 and 2026. This means the companies have extended the 5G modem agreement for another three years.
The new agreement comes as a surprise, as it was widely expected that the Apple would begin using its own internally developed 5G modems in 2024"s iPhone. Apple has been working on modem technology since 2019, when it dropped its modem deal with Intel.
However, the company will continue to rely on Qualcomm"s 5G over the three years of iPhone launches through the expected iPhone 18. While the deal"s financial details are unknown, it will allow Qualcomm to retain a significant revenue stream worth billions of dollars.
Qualcomm Technologies, Inc. today announced that it has entered into an agreement with Apple Inc. to supply Snapdragon® 5G Modem‑RF Systems for smartphone launches in 2024, 2025 and 2026. This agreement reinforces Qualcomm’s track record of sustained leadership across 5G technologies and products.
The announcement also clarified that the existing global patent license agreement between Apple and Qualcomm, established in April 2019, will continue. It ensures that Apple could incorporate Qualcomm"s 5G technology into its iPhones without the risk of patent litigation.
The global patent license agreement, effective as of April 2019, remains unchanged. Direct license between Apple and Qualcomm Incorporated: six-year term,with two-year option to extend.
In 2022, Apple is estimated to account for 21% of Qualcomm"s total revenue. But after 2026, the company expects its share of iPhone modems to drop to around 20% due to Apple"s own 5G modem. At MWC 2023, Qualcomm CEO and President Cristiano said, "We expect Apple to make their own modem in 2024," he continues. "But if they need ours, they know where to find us."
On the other hand, Apple refreshed its agreements with Broadcom in May. This new "multiyear, multibillion-dollar" arrangement secures Apple"s supply of 5G components. The deal shows Apple has big plans for its 5G modem.