Qualcomm and Apple are teaming up for an extended tech partnership that’s making waves. The scoop is that Qualcomm, the go-to name for modem chips that keep our phones connected to the internet, has just inked a deal with Apple. They’re going to keep supplying Apple with 5G chips, and get this – they’re in it for the long haul, at least until 2026!
Now, here’s why this is a big deal. Apple has been facing some challenges, especially in China, and they want to make sure their supply chains are rock-solid elsewhere. So, they’re not rushing into creating their own modem chips just yet, even though they’re doing their own thing with computer chips.
This isn’t the first time Qualcomm and Apple have joined forces. Back in 2019, they signed a chip supply deal after settling a legal battle that felt like it went on forever. But guess what? That deal is expiring this year, which means the iPhones Apple is expected to unveil soon will be the last ones under that old agreement.
But wait, there’s more! The new deal announced recently says Qualcomm will be Apple’s chip supplier for phones coming out every year until 2026. The exact dollar amount of this deal is a bit hush-hush, but it’s said to be “similar” to the previous one. UBS analysts estimated that Qualcomm sold about $7.26 billion worth of chips to Apple in 2022, just to give you an idea of the scale.
Oh, and remember that patent licensing deal they signed in 2019? It’s still on, and it’ll last until 2025. But, there’s a twist – they can extend it for two more years if they want to.
Did you know that when Windows 11 was released, Microsoft promised major improvements every year to continue improving the user experience? Windows 11 Version 22H2 debuted a year ago, and since then, the road has been dotted with smaller “Moment” updates, each introducing new features and capabilities to the table:
Now, what’s interesting is that Qualcomm thinks only about one-fifth of Apple’s iPhones will use their chips by 2026. But, hold on a second. They made a similar prediction in 2021, and it turned out to be a bit off. In 2022, all the iPhone 14 models used Qualcomm modems.
And here’s the kicker: Qualcomm’s CFO, Akash Palkhiwala, thinks that most of the iPhones coming out this year will also have Qualcomm modems. So, even though Apple is cooking up their own modem tech and bought Intel’s modem unit in 2019 for a cool billion bucks, they’re not quite ready to ditch Qualcomm just yet.
In a nutshell, this extended partnership between Apple and Qualcomm is making waves in the tech world. It’s a win-win for both companies, and it looks like we’ll be seeing a lot more Qualcomm chips in those shiny new iPhones for years to come. Exciting times ahead!