Qualcomm announced on Thursday that Apple has extended its patent-licensing agreement with the chip designer, even as the iPhone maker continues efforts to reduce its reliance on Qualcomm’s modem chips. The company did not disclose the timeline or specific details of the extension. The existing agreement is set to expire on March 31, 2027, with an option to extend it by two years.
The agreement maintains Apple’s access to parts of Qualcomm’s patent portfolio, although Qualcomm expects revenue from Apple-related products to decline faster than previously anticipated. Qualcomm’s licensing business accounted for approximately 15% of its total revenue in the June quarter. The company is counting on growth in its data centre business to help offset the expected decline in Apple-related revenue in 2027.
The partnership between the two companies has evolved through years of legal disputes and commercial agreements. In 2023, Qualcomm agreed to supply Apple with 5G chips until at least 2026. Their broader relationship was reshaped by a 2019 settlement that ended a two-year global legal battle over wireless patent royalties and modem-chip supply. The settlement included an undisclosed payment from Apple, the withdrawal of lawsuits worldwide and a six-year global patent-licensing agreement effective April 1, 2019.
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