in a U-turn, Apple Inc AAPL iPhones will reportedly continue to have Qualcomm Inc QCOM 5G modems for the vast majority of 2023.
What happened: In its Wednesday earnings report, Qualcomm said it expects to maintain its current foothold in providing 5G modem parts for the new iPhones in 2023.
The company had planned to provide only about 20% of the parts for 5G modems and expected to lose business to Apple’s homegrown devices. according to to Bloomberg.
Qualcomm’s statement confirms that Apple’s in-house modem design for next year’s models won’t see the light of day anytime soon.
See also: How to buy Apple (AAPL) stock
Why it matters: In 2019, Apple settled a dispute with Qualcomm and agreed to use its technology in iPhones. Apple then began building its cellular modem, the report said.
However, Apple’s efforts have been crippled by overheated prototypes, forcing the tech giant to delay the switch until at least 2024.
Apple did not immediately respond to Benzinga’s request for comment.
Qualcomm continues to expect the company to receive minimal revenue contributions from Apple in fiscal 2025.
Assuming this little consolation for Qualcomm investors amid a broader slump in smartphone demand and disappointing corporate guidance.
Continue reading: The 2023 high-end iPhone 15 series from Apple may have these 2 important updates; Analyst expects Android vendors to emulate the changed design
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