Qualcomm said it Expected to Supply 20% of Apple's Modem Chips in 2023
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Update time : 2022-11-24 10:03:42
Qualcomm will reportedly continue to supply modem chips for the "vast majority" of iPhones in 2023. The news is good for the company as it had previously feared that it might lose this business due to Apple developing its own modem chips.
In comments accompanying its earnings report today, Qualcomm said that the company's previous plan was to provide 20 percent of its 5G modem chips for new iPhones by 2023, but now expects to keep the current percentage. The statement also confirms that Apple will not be switching to its own modem design in next year's models. Apple has been actively developing its own cellular modem since it settled its lawsuit with Qualcomm in 2019 and agreed to continue using Qualcomm's technology in its iPhones for the foreseeable future. The company's chip design chief had told employees in 2020 that the design of the accessory was in the works. However, earlier this year it was again revealed that Apple's prototype design was overheating and therefore adjustments would not be made until 2024 at the earliest. Qualcomm still believes that Apple will only contribute a small amount of revenue to it in fiscal 2025. Apple has yet to comment on this. The delay doesn't bring much comfort to Qualcomm's investors. The company is struggling to cope with a general decline in demand for smartphones, and its earnings forecast is well below market expectations. The stock was down 8.4 per cent at one point in after-hours trading on Wednesday. Apple, which had been rumoured several times to be carrying its own baseband on the iPhone 15, seems to have been forced to continue working with Qualcomm in the end.
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