Qualcomm And Apple Sign New 5G Chip Deal For iPhones Until 2026: All Details – News18

(Reuters) – Qualcomm on Monday stated it had signed a brand new cope with Apple to provide 5G chips to the iPhone maker till at the least 2026. Qualcomm, whose shares rose greater than 8% in premarket buying and selling, is the main designer of what are often called modem chips that join telephones to cell knowledge networks.

The San Diego, California-based agency beforehand signed a provide cope with Apple in 2019, after the 2 firms settled a protracted authorized battle.

That chip provide settlement ends this yr, which means that the iPhones that Apple is anticipated to announce Tuesday can be the final cellphone debut underneath that settlement.

Under the deal introduced Monday, Qualcomm stated it is going to provide Apple with chips for telephones that may come out annually till 2026. Qualcomm didn’t disclose the worth of the deal, saying solely that the phrases are “similar” to its earlier settlement.

Qualcomm additionally stated {that a} patent licensing deal it signed with Apple in 2019 stays in place. That deal expires in 2025, however the firms have an choice to increase it for 2 years.

Apple is working by itself modem expertise and spent $1 billion to purchase Intel’s modem unit in 2019. Apple has not stated how shortly it plans to ramp up using its personal chips.

Qualcomm on Tuesday stated that its monetary projections will assume that solely a fifth of Apple’s iPhones will use its chips by 2026. However, Qualcomm made an identical projection about its enterprise with Apple in 2021 that turned out to be overly conservative, with iPhone 14 fashions launched final yr all utilizing Qualcomm modems.

(This story has not been edited by News18 workers and is printed from a syndicated news company feed – Reuters)