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Qualcomm to continue supplying Apple with 5G chips until 2026 under new deal

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Image credit : Yahoo Qualcomm (QCOM.O) revealed on Monday it had signed a pact with Apple for supplying 5G chips through 2026. This revelation comes at a time when Apple finds itself in a tight corner after a disrupted supply chain as China has recently imposed a ban on iPhones to its officials and so Apple plans to build up its supply chain somehow.  Apple is extending the deal worth billions of dollars to get modem semiconductors from Qualcomm for the next three years as well, implying that Apple’s vision to develop its own 5G chips is taking longer than expected. Qualcomm shares saw a sudden jump of 4% after the news came to light. Apple does not seem to be in a rush to prepare its own chip while continuing its reliance on Qualcomm. However, Qualcomm refrained from disclosing the value of the deal, while claiming that the terms are similar to its earlier agreement. “This agreement reinforces Qualcomm's track record of sustained leadership across 5G technologies and products,” the San Diego-based chipmaker said. [caption id="attachment_173751" align="aligncenter" width="2500"]iPhone-15-Pro-Burgandy Image credit : MacRumors[/caption] The new pact will incorporate “smartphone launches in 2024, 2025 and 2026,” Qualcomm said in a statement Monday. The companies' agreement had been set to end this year, and the latest iPhone — due on Tuesday — was expected to be one of the last to rely on the Qualcomm modem chip. Apple is prepared to announce its new iPhone 15 series at it's Wonderlust event on Tuesday. Rumor mills are all agog that we'll see an iPhone 15, an iPhone 15 Plus, an iPhone 15 Pro, as well as an iPhone 15 Pro Max. The iPhone 15 lineups were supposed to be the last Apple device to employ the Qualcomm modem chip. But now, Qualcomm will continue enjoying a formidable position in Apple's supply chain. Apple is the largest customer of Qualcomm—contributing to approximately a quarter of revenue, as per the data compiled by Bloomberg. Also read : Why is China prohibiting officials and state employees from using iPhones? Qualcomm's 5G chip and smartphone modem are vital components for iPhone as they facilitate connecting to the internet & making calls as well. Going ahead with the iPhone 12 generation, the chip has supported faster 5G networks. Meanwhile, it seems that Apple has to go a long way when it comes to employing its in-house smartphone modem. 

By Awanish Kumar

I keep abreast of the latest technological developments to bring you unfiltered information about gadgets.

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