Apple Extends Qualcomm Patent Licensing Deal

Qualcomm said Thursday that Apple has extended its patent-licensing agreement with the U.S. chip designer, maintaining a key part of their relationship even as the iPhone maker works to reduce its dependence on Qualcomm modem technology.

Qualcomm did not disclose how long the latest extension will last. The existing agreement is scheduled to expire on March 31, 2027, and includes an option for a two-year extension. Neither Apple nor Qualcomm provided additional comment on the arrangement.

The patent deal ensures Apple will continue licensing parts of Qualcomm’s wireless technology portfolio. However, Qualcomm has been preparing for a decline in business from the iPhone maker as Apple develops more of its modem technology internally.

In July, Qualcomm said revenue generated from Apple products was expected to decrease faster than previously anticipated. Its licensing division remains an important part of the company, accounting for about 15% of total revenue during the June quarter.

To diversify its business and offset an expected reduction in Apple-related revenue in 2027, Qualcomm has increasingly focused on other growth areas, including data center technology.

The companies also have a separate chip supply relationship. In 2023, Qualcomm agreed to provide Apple with 5G modem chips for iPhones through at least 2026. The agreement gave Apple additional supply stability as the technology giant faced greater challenges in China and sought to strengthen its broader supply chain.

Apple and Qualcomm’s relationship has evolved significantly since a major legal dispute over wireless patents and modem chips. In April 2019, the companies reached a settlement that ended roughly two years of litigation worldwide just as a U.S. jury trial was getting underway in San Diego.

As part of that settlement, Apple made an undisclosed payment to Qualcomm, while both companies dropped their global lawsuits. They also entered into a six-year worldwide patent-licensing agreement effective April 1, 2019, establishing the foundation for their current licensing relationship.