Apple is steadily cutting ties with Qualcomm, signaling a major shift in the tech landscape. With its custom C1 modem already featured in the new iPhone 16e and reportedly outperforming Qualcomm’s offerings, Apple is gearing up to fully transition away from third-party modems.
The current agreement between the two companies is set to end in March 2027-and Apple looks unlikely to renew it.
Qualcomm, long a key supplier of iPhone modems with annual revenue between $5.7 and $5.9 billion from Apple alone, appears unfazed publicly. In a recent Yahoo Finance podcast, CEO Cristiano Amon acknowledged the possibility of the Apple deal ending, but downplayed the impact: “There’s so much drama about our Apple relationship, which I think is not warranted.”
While Apple’s internal shift is expected to drop Qualcomm’s modem share in iPhones from 70% this year to just 20% next year, Qualcomm is already charting new territory. The company is pivoting toward markets like automotive technologies, the Internet of Things (IoT), and AI server chips-directly challenging competitors like Nvidia.
Insiders say Apple is already working on the second-generation C2 modem, promising even faster and more stable connectivity. The upcoming ultra-thin iPhone 17 Air, expected this September, will reportedly feature the C1 modem, and there are hints of custom modem integration into future MacBooks.
This strategic decoupling shows Apple’s relentless push for vertical integration while Qualcomm adapts by diversifying its portfolio. The coming years will redefine the chipmaking industry as both tech giants carve out new paths.
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