Back in 2019, Apple acquired Intel’s modem development business, and since then rumors have surfaced regularly about the Cupertino-based company’s intentions to port the iPhone to modems of its own design. The other day, the head of Qualcomm said that his company does not plan to supply Apple with modems for smartphones in 2024 – that is, Apple will start supplying itself with modems next year.
The latest iPhone generations continued to use Qualcomm mobile modems. Interview with CEO Cristiano Amon CNBC said last week: “We’re not making any plans for 2024, but I suspect we will deliver Apple won’t need to use modems next year, although that remains their choice.. Qualcomm expected to stop supplying modems to Apple by 2023, but the customer decided to extend the partnership for another year.
Amon didn’t elaborate on whether Qualcomm will continue to receive royalties from Apple even after it switches to using modems of its own design. He only clarified that license fees can be charged independently of the delivery of the components themselves.
Along the way, Qualcomm’s chief called a bill of laws passed in the United States that encourages companies like TSMC and Samsung to set up businesses in the country as an “excellent decision.” When it came to the threat of revoking export licenses for the right to supply components for Huawei’s needs, Amon hinted that such actions would have a negative impact on Qualcomm’s revenue, although it would not be significant. The company continues to supply chips with 4G support for Huawei’s needs under existing export licenses, and Qualcomm management is not aware of any upcoming bans.