Qualcomm Extends Apple Modem Deal to 2027, Dashing Hopes of In-House 5G Chip for iPhones

February 01, 2024 – Qualcomm has announced its financial results for the first quarter of fiscal year 2024, reporting revenues of 99.35billionandnetincomeof27.67 billion.

In a related development, MacRumors reports that during the earnings call, Qualcomm disclosed an extension of its modem chip licensing agreement with Apple until March 2027. This two-year extension of the existing agreement suggests that future iPhone models will continue to rely on Qualcomm’s 5G baseband technology, rather than Apple’s own in-house developed solution.

Industry observers believe that Apple’s motivation behind developing its own 5G baseband stems from a desire to reduce dependence on Qualcomm, address signal issues, and increase profit margins. However, it appears that this goal remains elusive in the near term.

Last November, wccftech reported, citing sources familiar with Apple’s 5G baseband chip division, that Apple might have halted development of its own 5G baseband chip. Although this information has not been independently verified.

Rumors suggest that this year’s iPhone 16 Pro series will be equipped with Qualcomm’s Snapdragon X75 baseband chip, while the iPhone 16 and iPhone 16 Plus will retain the Snapdragon X70 baseband chip featured in the iPhone 15 series. The Snapdragon X75 represents Qualcomm’s latest generation of 5G baseband technology, delivering downlink speeds of up to 7.5Gbps, setting a new record for the fastest 5G transmission speed in the Sub-6GHz band.

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