Qualcomm Inc. will continue to provide Apple with modem chips for the majority of the iPhones in 2023. The company expected Apple Inc. to stop using their technology and switch to their own proprietary 5G modem.
Qualcomm initially expected that it would account for just 20% of iPhone modem orders next year. It is currently planning to maintain delivery orders, according to comments that accompanied its earnings report Wednesday. They revealed that Apple wouldn’t switch to modems of its own design for iPhones that would be released in 2023.
Apple began to build its own 5G modem after the two companies settled legal disputes in 2019 and entered into a six-year licensing agreement. Under the agreement, the technology could be used in iPhones. Apple's chip development chief told employees in 2020 that development of the part was already underway.
However, as reported previously by Bloomberg News, Apple's work on modem chip failed due to the overheating of modem prototypes. The company won't switch to modems of its own design until 2024. Qualcomm still expects revenue contributions from Apple to be minimal in F2025.