Key facts
- Qualcomm and Apple extended their global patent licensing agreement.
- The agreement is set to expire on March 31, 2027.
- The deal includes an option for a two-year extension.
- Apple is working to reduce its reliance on Qualcomm's modem chips.
Qualcomm announced that Apple has extended its global patent licensing agreement with the chip designer. The current agreement is set to expire on March 31, 2027, and includes an option for a two-year extension. This development comes as Apple continues to work towards reducing its reliance on Qualcomm's modem chips. Qualcomm's licensing business accounted for roughly 15% of its total revenue in the June quarter, and the company has stated it is banking on growth in its data center business to offset lost revenue from Apple in 2027. In 2023, Qualcomm and Apple had signed a deal for Qualcomm to supply 5G chips until at least 2026. The companies had previously been involved in a global legal battle over wireless-patent royalties and modem-chip supply, which was settled in April 2019 with a six-year global patent licensing deal.