iPhone maker exercise licensing extension while preparing to phase out reliance on foreign 5G chips.
Apple has extended its patent-licensing agreement with Qualcomm, ensuring continued access to the chip designer’s wireless technology portfolio even as the tech giant accelerates plans to transition to proprietary modems.
While Qualcomm did not disclose the precise duration of the updated agreement, the existing licensing framework—established after a landmark 2019 legal settlement—was scheduled to run through 31 March 2027, with a built-in two-year extension option. The long-standing relationship previously saw Qualcomm sign a supply agreement in 2023 to provide 5G modems to Apple until at least 2026.
Despite the licensing extension, Qualcomm previously warned investors that revenue derived from Apple products is projected to decline faster than initially anticipated as Apple deploys in-house components. Qualcomm’s technology licensing division generated approximately 15 per cent of its overall revenue in the June quarter, with the group increasingly relying on data-centre hardware expansion to offset the projected shortfall in smartphone revenue beyond 2026.
