LAGOS, Nigeria (VOICE OF NAIJA) – Apple has decided to extend its partnership with Qualcomm for modem semiconductors for an additional three years, indicating that Apple’s efforts to create its own modem chips are taking longer than anticipated.
Under this renewed agreement, Qualcomm will provide modems for “smartphone launches in 2024, 2025, and 2026,” as stated by Qualcomm in a recent announcement.
The previous agreement between the two companies was set to conclude this year, with the upcoming iPhone, scheduled for release the following Tuesday, expected to be one of the last models to rely on Qualcomm modem chips.
This extension allows Qualcomm to maintain its substantial presence in Apple’s supply chain, as Apple is the company’s largest customer, accounting for nearly a quarter of its revenue.
For Apple, this move suggests that developing its own modem component has proven more challenging than initially anticipated.
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The project began in 2018 and was bolstered by Apple’s acquisition of Intel Corp.’s smartphone chip business in 2019.
Although Apple initially aimed to introduce its modem by 2023, it seems that the timeline has been pushed back, with expectations now set for late 2024 or early 2025.
Designing a modem that can seamlessly connect to various global cellular networks while matching or surpassing Qualcomm’s performance has posed challenges for Apple.
Issues related to battery life and certification with regulatory authorities have also contributed to the delays.
While Apple’s in-house chip development (Apple Silicon) has achieved success in replacing Intel processors in Macs, the modem project has faced more hurdles.
Nevertheless, Apple continues to invest in building its chip expertise and replacing other semiconductors in the iPhone.
Qualcomm, the world’s largest smartphone chip manufacturer, has had a complex relationship with Apple.
They previously engaged in legal battles over licensing fees for wireless network patents, with Apple ultimately agreeing to license Qualcomm’s technology until 2025, with an option to extend for two more years.
Despite this extension of the agreement until 2026, Apple could still introduce its own modem before then.
Qualcomm expects to hold a 20 percent share of the business when the 2026 iPhone launches, but Apple has plans for a gradual rollout of its modem technology.
