Two hands pointing at blue 5G and signal infographic with black background and bokeh. The 5th generation wireless technology of mobile signals brings about major changes in the Internet of Things.
Apple has made an important decision to extend its contract with Qualcomm, guaranteeing the use of Qualcomm’s 5G modem in iPhones until at least 2027. This extension is one year beyond the previously agreed upon 2026 and was confirmed in Qualcomm’s first earnings call for 2024. His CEO of Qualcomm, Cristiano Amon, expressed satisfaction with the continued partnership with Apple, reflecting a mutually beneficial relationship.
This enhancement comes amid challenges Apple faces in developing its own 5G modem. Despite ambitious plans and heavy investments, including acquiring Intel’s modem division for $1 billion in 2019, Apple’s progress has been slower than expected. The acquisition gave Apple a wealth of patents and a wealth of talent, but modem development hurdles remain. A Bloomberg report last year highlighted the predicament faced by Apple’s engineers and executives after prototype modems failed to meet performance and efficiency standards set for Qualcomm products.
The original intention was to launch devices this year with Apple’s own 5G modem, but the new deal with Qualcomm means that Apple’s own 5G modem is not yet ready for market. It is shown that. It is also worth noting that Qualcomm is the supplier of satellite communication modules for iPhone 14 and iPhone 15 models, further deepening the relationship between the two technology giants.
Apple has not officially commented on this contract extension with Qualcomm.
However, the decision to continue relying on Qualcomm’s expertise in 5G technology signals a pragmatic approach by Apple, which prioritizes product quality and reliability over rapid adoption of its own modem technology.
