Apple currently relies on Qualcomm, but one analyst says that the latter could remove it from the 5G modem supply list this instant
Apple has been grinding for years to develop an in-house 5G modem to reduce dependency on Qualcomm and save the billions that it has to pay the San Diego firm to utilize its technology. The company may finally catch a break next year when it unveils the iPhone SE 4, which would be the first handset to tout its custom baseband chip. However, Apple’s licensing agreement with Qualcomm will not end until March 2027, but its plans to set up its supply chain for this particular component have already been set in motion.
While the Cupertino giant has the resources to step away from Qualcomm in a few years, one analyst has implied that the 5G modem maker holds all the cards and it could deal a major blow to Apple by cutting it off from its list of customers that receive modem shipments. While Qualcomm would not benefit from this act, the blow dealt to Apple would be far more injurious, and the California-based titan would be left scrambling to find another supplier.Apple likely wets Qualcomm’s beak immensely with high sums of money for using the latter’s 5G modems in various devices
On X, top-ranked technology analyst Patrick Moorhead shares his views on the current business relationship between Apple and Qualcomm.
