In 2019, Apple entered negotiations with Samsung for the purchase of 5G modems, looking to expand their supply chain. However, Samsung was unable to meet the high demand for chips from Apple, leading the tech giant to explore other options. According to reports from The Korea Economic Daily, Apple then turned to Qualcomm for a potential deal on 5G modems. Negotiations with Qualcomm were successful, and Apple secured a deal with the company that lasted until 2023.
After the expiration of their deal with Qualcomm, Apple announced a new agreement with the company in early September. Qualcomm will continue to supply Apple with 5G modems for their smartphones through 2026. Although the financial terms of the deal were not disclosed, it is a significant partnership for both companies.
Apple has been investing in developing its own 5G modems for several years, with the acquisition of Intel's 5G division in 2020 being a key move in this direction. Despite these efforts, some sources suggest that Apple's 5G chips may lag behind Qualcomm's state-of-the-art modem chips by up to three years.
With the ongoing advancements in 5G technology and the increasing demand for high-speed connectivity, securing a stable and reliable supply of 5G modems is crucial for Apple. The company's deals with Qualcomm and Samsung highlight the importance of strategic partnerships in the tech industry, as companies strive to stay ahead in the competitive market.
Looking ahead, Apple's focus on developing its own 5G modems could potentially lead to more independence in their supply chain and greater control over the technology in their devices. As Apple continues to innovate and push boundaries in the world of technology, their partnerships with key players like Qualcomm and Samsung will play a crucial role in shaping the future of 5G connectivity.
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