In a recent announcement during its first earnings call of 2024, Qualcomm revealed that Apple has extended its modem chip licensing agreement through March 2027. This extension, spanning two additional years, solidifies Qualcomm’s continued role as a provider of modems for upcoming iPhone generations.
Despite Apple’s ongoing efforts to develop an in-house 5G modem chip, progress has faced delays, prompting the company to extend its reliance on Qualcomm’s technology.
Apple’s agreement with Qualcomm, which now stretches until March 2027, ensures the inclusion of Qualcomm modems in Apple’s upcoming iPhone models. The extension reflects a strategic decision by Apple to maintain a stable and reliable source for 5G modems as it continues work on its proprietary modem chip.
While Apple has been actively pursuing the development of its own 5G modem chip, challenges and delays have marked the journey. Bloomberg’s Mark Gurman reported in November 2023 that Apple’s in-house modem chip was postponed until late 2025 or 2026, with the potential for further delays. The initial goal was to have the Apple-designed modem chip ready by 2024, but the company faced setbacks.
Reports suggest that Apple encountered hurdles related to the Intel code it acquired as part of Intel’s modem chip business. The need for extensive code rewriting, along with challenges in introducing new features without disrupting existing ones, has contributed to the delays. Moreover, Apple must navigate the complex landscape of avoiding infringement on Qualcomm’s patents during its modem development efforts.
In the interim, the iPhone 16 Pro models, expected to launch in 2024, are rumored to utilize Qualcomm’s Snapdragon X75 modem. This modem is anticipated to feature improved carrier aggregation and a more power-efficient transceiver, enhancing the overall performance of the upcoming iPhone models.
Apple’s decision to extend its modem chip licensing agreement with Qualcomm underscores the challenges involved in developing a proprietary 5G modem chip. While Apple continues to invest in in-house solutions, the collaboration with Qualcomm ensures a seamless integration of advanced modem technology in the upcoming iPhone iterations. As technology evolves, the industry will be keenly watching for Apple’s progress in achieving its goal of a self-designed modem chip and how it shapes the future landscape of mobile connectivity.
