Apple is extending the patent license agreement with Qualcomm until 2027. This is largely out of necessity, as the development of its own modems has not yet started.

Qualcomm announced the extension of its agreement with Apple as part of its quarterly results presentation. This means that Apple can continue to use Qualcomm’s 5G technology for its iPhones until at least 2027. The delivery contract had previously been extended until 2026, but without an agreement on the patents, Apple is not simply allowed to use the modems. Now everything is fine again for a few years.

How the agreement came about is a special story. In 2019, the agreement ended a years-long legal battle between the two companies. Dissatisfied with Qualcomm’s high prices, Apple refused to pay to install the 5G modems in its iPhones. The deal was valued at $4.5 billion. At that time there was also an option to extend the contract.

What Apple does is not always better

If Apple had had its way, the agreement with Qualcomm would not have had to be extended. Apple wants to develop its own modems to reduce its dependence on Qualcomm, following the example of its own CPUs that Apple is already developing for iPhones and Macbooks. The original plan was to do this later this year starting with the iPhone 15, but Apple has so far failed to develop a 5G modem on the same level as Qualcomm’s. It will therefore be forced to work with Qualcomm for a few more years.

The mobile phone chip manufacturer also announces that its partnership with Samsung has also been extended. In the coming years, Samsung smartphones, from the Galaxy S flagship to the cheaper A-line, could also appear with a Qualcomm chip. Samsung also wants to install its own Exynos chips in its smartphones if possible, but since these cannot always deliver the same performance as Qualcomm’s counterparts, Samsung still needs Qualcomm.