Contrary to previous reports coming from Wall Street analysts and Qualcomm execs, Apple will continue to use 5G modems from Qualcomm through 2026. For the unversed, the Cupertino-based tech giant was expected to roll out 2024 iPhones with in-house developed 5G modems.
This bit came officially from Qualcomm who confirmed supplying 5G modems to Apple, from whom it earns 21% of the total revenue, through iPhone 15 (2023), iPhone 16 (2024), iPhone 17 (2025), and iPhone 18 (2026). As per UBS estimates, 21% of revenue at approximately $44.2 billion as of fiscal year 2022 making Apple its biggest customer.
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Apple has been developing its modems for years now. it acquired Intel’s modem division in 2019 to speed up the process, however, constant issues and delays shrouded the prestigious project. With 2024 rolling in, Apple was highly likely to have finished development of the in-house 5G modems and would instead use it on their iPhones but things aren’t working in their favor. This is also because Qualcomm owns some of the patents required for 5G modems soon to expire in 2029 and 2030. For now, Qualcomm earned approximately $1.90 billion in 2022 as cellular licensing fees as it charges royalties for the patents used.
Qualcomm expects to supply about 20% of modems to iPhones by 2026 citing the decline in shipments once Apple starts using the modems developed in-house.
Apple is all set for the iPhone 15 series launch on September 12 (which is today at the time of writing this). The event will see the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max (or Ultra). Apart from that, we’ll see the Apple Watch Series 9 while the Apple Watch Ultra 2 might make its splash too among other offerings.
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