Qualcomm renewed its global patent-license agreement with Apple, effective April 1, 2027; the companies did not disclose its terms or duration. CFO Akash Palkhiwala says Qualcomm aims to build roughly equal data center, smartphone and auto/IoT businesses within two years.
The new agreement covers patent licensing, not modem supply. Apple is shifting to its own modems: Qualcomm supplies the modem only in U.S. iPhone 18 Pro Max models, while other models use Apple modems. Qualcomm says Apple devices may still rely on cellular technologies covered by its patents.
Qualcomm's handset-chip sales fell 20% year over year to $5.1 billion in its fiscal third quarter, while automotive revenue rose 61% to $1.59 billion. By fiscal 2029, it targets $40 billion in non-handset revenue, including $15 billion from data centers and $10 billion annually from automotive. Qualcomm has an AI data-center silicon deal with Amazon and says it is also working with Meta and an unnamed hyperscaler.
