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HomeNewsQualcomm says it is going to provide Apple with 5G modems for...

Qualcomm says it is going to provide Apple with 5G modems for iPhones by means of 2026 Acquire US

Photograph taken on Aug. 14, 2023 reveals iPhones at an Apple retailer in Hangzhou, East China’s Zhejiang province. On the identical day, knowledge launched by TechInsights confirmed that Apple’s iPhone gross sales in China surpassed america for the primary time within the second quarter of 2023, changing into the biggest single marketplace for iPhone shipments. 

Costfoto | Nurphoto | Getty Photographs

Qualcomm stated Monday that it’s going to provide Apple with 5G modems for smartphones by means of 2026.

Wall Road analysts and Qualcomm officers had beforehand stated they anticipated Apple to make use of an internally developed 5G modem beginning in 2024.

The continued gross sales to Apple will increase Qualcomm’s handsets enterprise, which reported $5.26 billion in gross sales within the quarter resulted in June, and will soften the blow of doubtless dropping a essential buyer. About 21% of Qualcomm’s fiscal 2022 income of $44.2 billion got here from Apple, in keeping with a UBS estimate.

Qualcomm at present provides Apple with 5G modems for its iPhones, however Apple has been working to construct its personal modems to maneuver away from Qualcomm chips. It purchased Intel‘s smartphone modem division in 2019 to construct its personal modem. Nevertheless, analysts have instructed that it is going to be difficult for Apple to maneuver away from Qualcomm’s chips due to their complexity.

Qualcomm additionally makes cash from Apple by means of mobile licensing charges, which have been about $1.9 billion in 2022, in keeping with the UBS estimate.

Qualcomm continues to gather royalties from Apple underneath a six-year settlement, it stated. That settlement was struck on the finish of a authorized battle between Apple and Qualcomm over royalties that was settled in 2019.

Qualcomm says that it expects to solely provide 20% of the modems wanted for Apple’s 2026 smartphone launch, signaling that it seemingly nonetheless expects the Apple enterprise to ultimately decline. A Qualcomm official stated the corporate was not updating its steering to absorb account the Apple gross sales.

Apple is anticipated to announce new iPhones, seemingly referred to as iPhone 15, on Tuesday, which can use Qualcomm modems.

CNBC has reached out to Apple for remark and can replace this story accordingly.

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