Apple has been forced to extend its deal with Qualcomm, the chip giant that makes 5G modems for iPhones, after failing to make its own 5G chips. The tech titan had hoped to ditch Qualcomm by 2026 and use its custom 5G modem, but now it must stick with Qualcomm until 2027.
This means that Apple needs help to catch up with Qualcomm, the leader in 5G technology. Qualcomm's boss, Christiano Amon, said he was chuffed with the relationship with Apple, as it means more money for his company and will presumably keep him in swimming pools and yachts for a while.
Apple was supposed to launch its 5G modem by late 2025 or early 2026, but now it looks like it will take longer -- probably on the same time scale as the Apple car and with as much hype.
Apple's 5G nightmare shows that the company needs to be fixed as it tries to reduce its reliance on Qualcomm. Apple's plan has hit many bumps along the way. Firstly, its 5G modem was rubbish and overheated, making it much worse than Qualcomm's. Secondly, even after buying Intel's 5G modem business for £790 million, Apple still can't crack the 5G puzzle. Thirdly, Apple has kept delaying its cheap iPhone SE 4 because it can't afford to use Qualcomm's chips and make a profit.
Apple fans will have to wait longer for a 5G iPhone that doesn't use Qualcomm's chips, while Android users continue to enjoy faster and cheaper 5G phones.