Qualcomm Extends Patent Licensing Partnership with Apple Through 2027
Qualcomm's (QCOM) stock rose by 0.2% after the company announced that it would extend its patent licensing partnership with Apple through April 1, 2027.
The agreement, which has been in place since a settlement was reached in 2019 following years of legal battles between the two tech giants, focuses on intellectual property rights rather than chip supply. Despite Apple's efforts to develop its own modem technology, Qualcomm maintains ownership of fundamental cellular connectivity patents that Apple cannot bypass through engineering alone.
Qualcomm CFO Akash Palkhiwala emphasized that the Apple announcement is just one part of a broader strategic transformation for the company, which aims to become a 'platform company' with three major businesses: data center, smartphones, and auto/IoT. The data center segment is projected to contribute $15 billion towards the company's non-handset revenue objective by fiscal 2029.