Apple extends agreement with Qualcomm for 5G modem chips until 2027: Report

Apple has been working on producing in-house modem chips, but has faced multiple challenges in the process

Qualcomm CEO Cristiano Amon in an interview with CNBC has confirmed that Apple has agreed to extend its patent licence agreement related to 5G modem through March 2027. Last year, Apple extended the agreement for using Qualcomm’s 5G modems until 2026 which has now been extended further until 2027.

Amon in his interview with CNBC said that after last year’s deal, Apple had an option to extend the deal further, which they have until March 2027. “We are very happy with the relationship with Apple right now, and we will continue to be supplying modems to them,” said Amon.

Apple has been working on developing in-house modems since 2019 when the Cupertino-based company acquired the majority of Intel's smartphone modem business. However, there have been news reports alleging that Apple's attempt to produce in-house 5G modem chips has been hampered by major problems related to unrealistic goals, an inadequate understanding of the challenges involved, and unusable prototypes.

Last month, Bloomberg’s Mark Gurman reported that Apple has shifted its attention to focus on the 6G cellular modem, while continuing to work on its first 5G modem chip. According to the analyst, Apple is racing to get its modem finished so it does not need to extend a contract with Qualcomm. He stated that the two companies have feuded over the years, and Apple really does not want to rely on Qualcomm for this vital iPhone component.

Apple is yet to comment on the deal with Qualcomm, but with the new contract extension in place, it is highly likely that Apple’s attempt of producing in-house modem chips have been hindered further.