In a turnabout, Apple Inc.’s AAPL iPhones will reportedly continue to have Qualcomm Inc.’s QCOM 5G modems for the vast majority of 2023.
What Happened: In its earnings report on Wednesday, Qualcomm stated that it expects to retain the current foothold in providing 5G modem parts for the new iPhones in 2023.
The company had planned to provide only about 20% of 5G modem parts and was anticipating losing business to Apple’s homegrown devices, according to Bloomberg.
Qualcomm’s statement confirms that Apple’s in-house modem design for next year’s models won’t see the light of the day anytime soon.
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Why It’s Important: In 2019, Apple settled a lawsuit with Qualcomm and agreed to use its technology inside iPhones. Subsequently, Apple started building its cellular modem, the report noted.
However, Apple’s efforts were crippled by prototypes getting overheated, forcing the tech giant to put off the switch until at least 2024.
Apple did not immediately respond to Benzinga’s request for comment.
Qualcomm still assumes that in fiscal 2025 the company will receive only minimal revenue contributions from Apple.
This provided little comfort to Qualcomm investors amid a broader slump in smartphone demand and a disappointing company forecast.