
Qualcomm Agrees Deal With Apple To Supply IPhone Chips
CIOTechOutlook Team | Tuesday, 12 September 2023, 08:48 IST

Previous supply deals have proven profitable for Qualcomm but costly for Apple. According to a UBS estimate from last month, Qualcomm's modem sales to Apple were approximately $7.26 billion in its most recent fiscal year, or approximately 16% of its total revenue. Qualcomm, whose stock has dropped 20% in the last year due to falling smartphone demand, did not disclose the value of its latest transaction with Apple.
The acquisition, however, may signal that Apple's long-running quest to develop its own modems will not be making its way into the company's flagship phones anytime soon. Apple paid $1 billion for Intel's smartphone modem unit in 2019, taking on 2,200 employees and a patent portfolio. Intel had also struggled to create 5G modems, wasting roughly $1 billion each year in the process.
Apple has a lengthy history of developing its own technologies and relying less on third-party chip providers. It released its first processor chip for its iPad and iPhone products in 2010. These in-house mobile CPUs have helped Apple gain a performance and battery life advantage over its Android phone rivals over the years. The majority of Android phones rely on the same third-party chip providers, such as Qualcomm and Taiwan-based MediaTek.
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