SoftBank Shares Surge as It Eyes Up to $30 Billion New Investment in OpenAI 
Ford and GM Near Financing Deal to Support First Brands Group During Bankruptcy 
Elon Musk Reportedly Eyes June 2026 SpaceX IPO Timed With Planetary Alignment and Birthday 
Google Halts UK YouTube TV Measurement Service After Legal Action 
China Imposes 55% Tariff on Beef Imports Above Quota to Protect Domestic Industry 
California Governor Gavin Newsom Launches Review Into Alleged TikTok Content Suppression After U.S. Ownership Deal 
Morgan Stanley Flags High Volatility Ahead for Tesla Stock on Robotaxi and AI Updates 
U.S. Dollar Steadies Ahead of Fed Minutes as Markets Eye Policy Divisions 
Asian Stock Markets Start New Year Higher as Tech and AI Shares Drive Gains 
Tesla Plans FSD Subscription Price Hikes as Autonomous Capabilities Advance 
Woodside Energy Flags Lower 2026 Production Outlook Despite Strong Q4 Revenue Beat 
Apple Stock Jumps as Company Prepares Major Siri AI Chatbot Upgrade 
Rewardy Wallet and 1inch Collaborate to Simplify Multi-Chain DeFi Swaps with Native Token Gas Payments 
Microsoft Restores Microsoft 365 Services After Widespread Outage 
ASML’s EUV Monopoly Powers the Global AI Chip Boom 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
Elon Musk Shares Bold Vision for AI, Robots, and Space at Davos 
Amid challenges in China, Apple solidified its global supply chain by sealing a deal with Qualcomm, ensuring a 5G chip supply until 2026. This multi-billion-dollar partnership underscores a prolonged collaboration despite Apple's shift to self-designed processing chips.
The extension of the agreement surpasses expectations, as it secures a long-term partnership between the two companies worth billions of dollars. This collaboration also suggests that Apple is not rushing to develop its modem despite transitioning its computers to self-designed processing chips.
Following the official announcement, Qualcomm's shares increased 4% in early afternoon trade, further solidifying its position as a leading designer of modem chips that facilitate connectivity between smartphones and mobile data networks. Conversely, Apple's shares saw a more modest rise of 0.5%.
2019, Qualcomm and Apple signed a chip supply deal after resolving a lengthy legal dispute. As the existing supply agreement is scheduled to conclude this year, it is anticipated that the upcoming iPhones set to be announced on Tuesday will be the last to debut under that specific arrangement.
The exact financial details of the deal were not disclosed by either party, with Qualcomm only stating that the terms are "similar" to the previous agreement. Market analysts at UBS estimate that Qualcomm sold approximately $7.26 billion worth of chips to Apple in 2022.
Furthermore, Qualcomm emphasized that the patent licensing deal it signed with Apple in 2019 would remain in effect. This agreement expires in 2025, but the two companies can extend it for two more years.
While Apple continued developing its modem technology and acquired Intel's modem unit in 2019 for a staggering $1 billion, the timeline for fully implementing its chips remains undisclosed.
Qualcomm shared that its future financial projections assume that only a fifth of Apple's iPhones will utilize its chips by 2026.
Photo: James Yarema/Unsplash
