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Apple Is Still Paying Qualcomm Even Though It Makes Its Own iPhone Modem Now, and There’s a Surprisingly Simple Reason Why

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Apple has renewed its global patent licensing agreement with Qualcomm, extending a relationship between the two companies even as Apple replaces Qualcomm’s modem chips across its products.

Qualcomm announced the new agreement this week, which takes effect April 1, 2027. Financial terms and the length of the agreement weren’t disclosed.

The important distinction is that this is a patent licensing deal, not an agreement for Apple to keep buying Qualcomm modems.

Apple’s transition to its own cellular chips is already well underway. The iPhone 18 Pro uses Apple’s C2 modem worldwide, while the iPhone 18 Pro Max uses it everywhere except the United States. The iPhone Duo also ships with C2 globally.

Only the U.S. iPhone 18 Pro Max still uses Qualcomm’s Snapdragon X80. Apple’s latest cellular iPad Pro and iPad Air models have already moved to the earlier C1X.

Apple still needs Qualcomm’s patents

Designing its own modem doesn’t allow Apple to sidestep the patents behind the cellular standards those chips need to support.

Qualcomm owns a large portfolio of wireless patents covering technologies used across cellular networks and devices. Apple can therefore build its own modem while still paying Qualcomm for the right to use patented technology inside it.

That’s why Thursday’s renewal doesn’t mean Apple is reversing course on its modem strategy. Qualcomm can lose Apple as a chip customer while still collecting licensing revenue from Apple devices that use Apple’s own cellular silicon.

The two companies reached their previous licensing agreement in April 2019 after settling years of litigation over patent royalties.

That agreement initially ran for six years, with Apple later exercising an extension that keeps it in place through March 31, 2027. The newly announced deal takes over the following day.

The Qualcomm modem era is nearly over

Apple and Qualcomm also have a separate chip supply agreement covering iPhone launches through 2026, and that relationship has been shrinking as Apple rolls out its own modems.

The iPhone 18 lineup shows how far the transition has progressed. Apple’s C2 now handles cellular connectivity across nearly the entire lineup, including its first foldable, leaving the U.S. iPhone 18 Pro Max as the notable exception.

That makes the distinction between Qualcomm’s two businesses particularly important. Apple is increasingly eliminating the Qualcomm hardware inside its devices, but Qualcomm’s patents are another matter.

For now, Apple can keep replacing Snapdragon modems with its own chips without ending its financial relationship with Qualcomm.

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Founder & Editor-in-Chief

Herby has a healthy obsession with all things Apple, especially the iPhone. He loves to rip things apart to see how they work. He is responsible for the editorial direction, strategy, and growth of Gotechtor.

Herby Jasmin

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