Apple and Qualcomm Reach Modem Supply Agreement, Delaying Apple's Own Modem Until 2027

Qualcomm and Apple recently reached an agreement for Qualcomm to continue supplying modems to Apple, providing Qualcomm some breathing room after expecting to lose Apple's business.

Apple had been planning to build its own modem and bought Intel's modem business, but appears to have faced challenges developing its own modem.

This delays the timeline for Apple launching its own modem to at least 2027, giving Qualcomm more time for other segments like auto to ramp up.

The agreement suggests Qualcomm will supply Apple through the 2026 iPhone launch at minimum.

There is potential for Apple and Qualcomm to mend their relationship long-term, given pragmatism on both sides.