Two very large tech companies can sue each other for years, but still find it beneficial to cooperate when push comes to shove.
Per Bloomberg’s Mark Gurman, although Apple has been attempting to build its own 5G modems, it will apparently continue to rely on Qualcomm 5G chips for iPhones in 2023. .
Sources have stated that Apple likely will not use its planned in-house chips for its 2023 iPhones. While Apple has been working on its own 5G modem, Qualcomm will continue to supply the “vast majority” of chips for 2023 iPhones.
Qualcomm is said to have beenanticipating losing Apple’s business due to Cupertino’s decision to build its own modem chips in-house. However, it now seems the earliest Apple will be able to begin shipping iPhones with its own manufactured modems is 2024. According to Gurman, Bloomberg originally reported that Apple has been having issues with prototype modems overheating.
Per Qualcomm, the company originally aimed to supply around 20% of the components for the 2023 iPhone’s 5G modem. Gurman has stated that the company “now expects to retain its current foothold”, citing comments included within the company’s earnings report.
Qualcomm and Apple have a complicated history that includes numerous lawsuits over the years. These companies have also spun off into patent disputes and exclusivity disagreements, the two companies having slugged out a two-year legal battle over chip-royalties.
Apple and Qualcomm were able to settle on a six-year licensing agreement, which also included a multiyear chipset supply agreement, Apple decided to start building its own 5G modem chips. To help its situation, Apple acquired Intel’s modem business in 2019. While Apple was hoping for the modems to debut by 2023, the new report from Gurman makes a 2024 debut seem more likely.
According to Qualcomm’s earnings report on Wednesday, the company is dealing with a “broader slump in smartphone demand and delivered a far weaker forecast than expected”.
Stay tuned for additional details as they become available.
Via The Mac Observer and Bloomberg