Apple and Qualcomm have teamed up, and Qualcomm will be making chips for Apple’s iPhones until 2026.
Qualcomm just announced that it’s extending its friendship with Apple to provide those speedy 5G chips until at least 2026. This decision is pretty clever, especially because Apple is dealing with some challenges in the Chinese market. This partnership is like a superhero team-up, helping Apple strengthen its tech supplies all around the world.
On Monday, Qualcomm shared news about a longer partnership with Apple, lasting for three more years. This means Apple is open to getting some of its computer chips from companies other than itself. The decision to continue working with Qualcomm for another three years goes beyond what people first thought, as Apple is taking its time before introducing its own type of computer chip, even though it’s already using its own Apple Silicon in its computers.
Qualcomm’s stocks went up by 4% when they shared some exciting news. On the other hand, Apple’s stocks only went up a little, by 0.5%. Apple faced a challenge when there were talks about banning iPhones for government officials, causing their overall value to drop quite a bit.
Qualcomm, based in San Diego, California, made a deal with Apple for providing computer chips in 2019. This agreement was settled after a long legal disagreement between the two big tech companies. The deal they made is about to finish this year. So, the next iPhone that’s coming out will be the first one to use Qualcomm’s modems under this agreement.
Apple and Qualcomm have made a plan. Qualcomm will make chips for Apple’s new phones every year until 2026. Even though they didn’t share exactly how much money is involved, Qualcomm mentioned that the deal is kind of like their old agreement.
Apple hasn’t officially responded to this news yet. However, a report from Reuters on August 3rd mentioned that UBS analysts estimated Qualcomm’s chip sales to Apple in 2022 were around a whopping $7.26 billion.
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