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Qualcomm and Apple modem and licensing relationship

Updated 2 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-25 01:35 UTC → 2026-09-29 11:33 UTC · added removed

Qualcomm is experiencing shifts in its business model as its major customer, Apple, transitions toward developing in-house mobile modems. This move contributed to a roughly 20% drop in Qualcomm’s smartphone chip revenue between April and June. However, Qualcomm’s licensing division remains a high-margin component of its revenue, with fees calculated based on the total retail price of a smartphone. While Apple is increasingly integrating has been aggressively developing its proprietary C2 modem globally, reports suggest own in-house cellular modems—such as the transition C1, C1X, and C2 series—it is not uniform, as certain expected to transition all new iPhone models to its own hardware by 2027, effectively removing Qualcomm hardware from the devices. This follows an eight-year development effort involving tens of billions of dollars in investment. Currently, the iPhone lineup uses a mix of technologies; while newer models like the US version iPhone 18 Pro and iPhone Duo utilize Apple's C2 modem, some versions, such as the U.S. model of the iPhone 18 Pro Max may Max, still utilize Qualcomm hardware. contain Qualcomm's Snapdragon X80 modem due to development delays and existing contract obligations. Despite the competition from Apple’s internal hardware development, the two companies have extended their global patent licensing agreement. This Announced in September 2026, this new deal, deal is set to take effect on April 1, 2027, ensures that Qualcomm will continue to license its cellular 2027. The agreement focuses on intellectual property and connectivity patent portfolio to Apple licensing for use across its product lineup. This renewal follows a 2019 settlement that ended years cellular and connectivity technologies, which is distinct from the supply of legal disputes regarding patent royalties. While Apple has developed various in-house designs, such as physical modem hardware. Because the C1, C1X, and C2, it still requires licenses for underlying 4G and 5G agreement covers standard-essential patents. patents (SEPs), Apple will continue to pay Qualcomm royalties to ensure device compatibility with global mobile networks. This framework provides Qualcomm’s Technology Licensing (QTL) division with a stable revenue stream even as Apple reduces its reliance on Qualcomm’s physical chipsets.

Versions

  1. 2026-09-29 11:33 UTC Qualcomm and Apple modem and licensing relationship
  2. 2026-09-25 01:35 UTC Qualcomm and Apple modem and licensing relationship
  3. 2026-09-24 13:26 UTC Qualcomm and Apple modem and licensing relationship

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