Qualcomm Secures Long-Term Deal to Supply Apple with iPhone Modems

Qualcomm has announced a new deal with Apple to supply modem chips for iPhones until 2026, indicating that Apple's efforts to develop its own chips are progressing slower than expected. Qualcomm's stock surged by about 4% following the announcement. While Apple has been working on its own systems since acquiring Intel's smartphone-modem business in 2019, the target date for implementing its own connectivity chip sets has been continuously delayed. Qualcomm expects to have a 20% share of modems in the 2026 iPhone models, suggesting that Apple may begin installing its own modems by then. The deal is seen as a positive sign for Qualcomm's stock and its technological leadership in the space.