Apple and Qualcomm agreed on Monday that Qualcomm would provide 5G chips until at least 2026. This comes at a time when Apple is having more problems in China and is looking to strengthen its supply lines in other places.
Qualcomm gets to keep working with Apple for at least three more years than was originally planned as part of the deal. This shows that Apple is not in a hurry to release its own modem, even though it is switching all of its computers to processing chips that it designed itself.
In the early afternoon, Qualcomm stock was up 4%. Modem chips that connect phones to mobile data networks are made by this company more than any other. Apple stock went up 0.5%.
It’s the end of that supply deal this year, so the iPhones that Apple is likely to announce on Tuesday will be the last phones to come out under that deal.
According to Qualcomm, only a fifth of Apple’s iPhones will use its chips by 2026. This is what the company said on Monday in its financial estimates.
But Qualcomm also said what it thought would happen with its business with Apple in 2021, and it turned out to be too optimistic. All 14 models of the iPhone that came out last year used Qualcomm chips.
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