Apple has extended its modem chip licensing agreement with Qualcomm through March 2027, according to Qualcomm’s first earnings call of 2024. This means that we can expect to see Qualcomm modems in the next several iPhone generations. Apple has been working on developing its own 5G modem chip in-house for the last several years. However, the company seem not to be ready to use its own 5G modem. The technology would keep it from having to rely on Qualcomm for 5G chips.
Today, Qualcomm said in its first earnings call in 2024 that Apple has extended its modem chip (baseband chip) license agreement. Apple’s existing deal has now been extended for two years. In the past few years, Apple has been working on developing its own 5G modem chips internally.
Background
Apple has been using Qualcomm’s modem chips in its iPhones for years, but the two companies have had a rocky relationship. In 2017, Apple sued Qualcomm for $1 billion, accusing the chipmaker of overcharging for its chips and withholding rebates. Qualcomm countersued, and the two companies were locked in a legal battle for years. In 2019, the two companies settled their dispute and signed a six-year licensing agreement, which included a multi-billion dollar payment from Apple to Qualcomm.
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In November 2023, Bloomberg’s Mark Gurman said that Apple’s modem chip work has been delayed until late 2025 or 2026, and may be delayed further. Apple originally aimed to launch an Apple-designed 5G modem chip by 2024, but it failed to meet that goal. The company then hoped to introduce the modem chip in the iPhone SE launched in the spring of 2025. However, it was unable to achieve that goal.
Gurman said at the time that Apple was “years away” from making a chip that performed as well or better than Qualcomm’s. According to reports, Apple encountered problems with the Intel code it used when it acquired Intel’s modem chip business. Apple had to rewrite the code and add new features, causing existing features to be broken. In addition, Apple must avoid infringing Qualcomm’s patents during modem development. The iPhone 16 Pro series models due to be released this year are expected to use Qualcomm’s Snapdragon X75 modem, which features improved carrier aggregation and more energy-efficient transceivers.
Conclusion
Apple has extended its modem chip licensing agreement with Qualcomm through March 2027. This means that we can expect to see Qualcomm modems in the next several iPhone generations. Despite Apple’s efforts to develop its own 5G modem chip, the technology is not yet ready for deployment. This prompted Apple to extend its partnership with Qualcomm. This extension reflects the complexities and challenges Apple faces in developing its modem technology, including delays and technical hurdles. For now, iPhones are expected to continue using Qualcomm’s modems. The upcoming iPhone 16 series is expected to use the Snapdragon X75, ensuring reliable 5G connectivity for users.
