Apple Extends Deal with Qualcomm for 5G Tech
In an exciting development, Qualcomm has announced an extension of its partnership with tech giant Apple. This agreement signifies Qualcomm’s ongoing role as a pivotal player in the realm of 5G technology and its continued collaboration with Apple.
The agreement entails Qualcomm providing its Snapdragon 5G baseband and RF systems to Apple for the years 2024, 2025, and 2026. This partnership not only underscores Qualcomm’s technological leadership in the 5G domain but also reinforces its financial standing, as it is set to earn profits from Apple through cellular license fees.
Qualcomm’s cellular license fees are estimated to reach approximately $1.9 billion in 2022, demonstrating the significant financial impact of this partnership on both companies. Apple, for its part, remains a crucial partner for Qualcomm, with approximately 21% of Qualcomm’s total revenue in 2022 attributed to the Cupertino-based tech giant.
Interestingly, Apple has been striving to reduce its reliance on Qualcomm and develop its own 5G baseband technology. To this end, Apple made a substantial investment by acquiring Intel’s 5G baseband business, which included a vast pool of employees and patents. However, the journey to independence in this area has proven to be a challenging one for Apple.
As this news circulates, some curious netizens have even raised the question of whether Apple should consider alternative suppliers like Huawei for their 5G needs.
This extension of the Qualcomm-Apple partnership not only showcases Qualcomm’s prowess in the 5G arena but also highlights the complex dynamics of technological dependence and competition within the tech industry. As we move into the next era of mobile technology, it remains to be seen how this partnership will evolve and how Apple’s pursuit of self-developed 5G baseband technology will progress.
