Apple will supply 20% of modem chips to Qualcomm

Apple will supply 20% of modem chips to Qualcomm

Nov 16, Reuters -- Qualcomm Inc. believes that it will supply only 20% of the modem chips to connect Apple Inc's wireless data networks by the device's 2023 launch.

Qualcomm currently supplies modem chips for Apple's devices. Qualcomm said at an investor conference that it believes its phone chip revenues will expand in line with broader phone markets despite Apple finding 80% of its modem chips from other suppliers.

Apple is working on its own modem chip and Intel Corp has purchased its modem unit. Qualcomm hasn't said whether it believes Apple will self-supply all of the share that Qualcomm expects to lose or whether it will turn to other vendors.

A low single-digit percentage of the company's chip sales by the end of fiscal 2024 is expected to be made by the company's chief financial officer Akash Palkhiwala. The chip revenues of Qualcomm hit $27 billion this year, and $10 billion came from sources other than smartphone handsets.

excluding Apple sales, the company believes that revenue growth in handsets will grow faster than the overall market, due to its traction with higher-end smartphone makers such as Xiaomi Corp, Oppo and Vivo.

The Chief Executive, Cristiano Amon, said during the event that we're no longer defined by a single end market and a single customer relationship.

Amon said that Qualcomm sells Apple what are called radio-frequency front-end chips that are paired with modem chips. Amon said that Qualcomm will have a chance to sell chips to Apple regardless of where Apple sources its modem chips.

He said that those potential wins are not included in Qualcomm's forecasts.