Qualcomm says it will supply Apple with 5G modems for iPhones through 2026, its share is up 8% in pre-market trading.
Wall Street analysts and Qualcomm officials had previously said they expected Apple to use an internally developed 5G modem starting in 2024.
The continued sales to Apple will boost Qualcomm’s handsets business, which reported $5.26 billion in sales in the quarter ended in June, and could soften the blow of potentially losing a critical customer. About 21% of Qualcomm’s fiscal 2022 revenue of $44.2 billion came from Apple, according to a UBS estimate.