Qualcomm and Apple have announced a new multi-year chip supply agreement for 5G modem chips. Qualcomm will supply its latest Snapdragon 5G Modem-RF System to Apple for its upcoming 5G devices over the next three years.
Apple Secures 5G Chip Supply Through 2025 With Qualcomm Deal
The new supply agreement between the two technology giants covers all of Apple’s 5G devices to launch in 2025. This ensures Apple will have a steady supply of advanced 5G chips from Qualcomm as it develops its modem.
For Qualcomm, the deal strengthens its leadership in 5G technologies by securing Apple, its biggest customer for 5G chips, for the next three years. It will give the chipmaker a predictable revenue stream from hundreds of millions of iPhones sold annually.
On the other hand, the deal allows Apple continued access to Qualcomm’s cutting-edge 5G modem as the iPhone maker reportedly works on its own 5G chip, which is expected to be ready by 2025. Now, Snapdragon’s 5G platform powers all of Apple’s 5G iPhones, from the iPhone 12 lineup to the upcoming iPhone 14 series.
The multi-billion-dollar agreement highlights the symbiotic relationship between the two companies regarding 5G technology and innovation. As 5G networks expand globally, the deal cements Qualcomm’s system-level leadership while ensuring iPhones remain at the forefront with best-in-class cellular performance.