Qualcomm Secures Long-Term Patent Deal with Apple
Qualcomm has secured a long-term patent deal with Apple, easing revenue fears and providing clarity on one of the tech sector's most lucrative commercial partnerships. The agreement takes effect April 1, 2027, securing a critical revenue stream for Qualcomm.
The renewed global patent licensing agreement follows years of intense competition and legal battles between the two companies. In 2017, Apple sued Qualcomm over 'excessive royalties', sparking a two-year global legal battle that ended with a 2019 settlement and the foundation of their current licensing pact.
Despite Apple's efforts to break free from Qualcomm's hardware by acquiring Intel's modem business and transitioning to its own in-house cellular chips, the company cannot completely sever ties due to Qualcomm owning foundational patents for modern cellular connectivity. As a result, Qualcomm will continue to collect highly profitable intellectual property fees even as future iPhones are powered by Apple's own silicon.