Qualcomm (QCOM.US) and Apple (AAPL.US) renew global licensing agreement, effective from April 2027

According to Jinse Finance APP, Qualcomm (QCOM.US) stated on Thursday that it has renewed its global licensing agreement with Apple (AAPL.US). The new agreement will officially take effect on April 1, 2027, which means that in the short term, the iPhone manufacturer will remain a core customer for Qualcomm.

"We are pleased to extend our licensing agreement with Apple," said John Han, Qualcomm's executive vice president responsible for licensing. The statement announcing the renewal on Thursday did not specify the term of the new agreement.

Following the announcement, Qualcomm and Apple's share prices were largely unchanged during pre-market trading on Thursday in the US stock market.

It is understood that as the world's largest smartphone processor manufacturer, Qualcomm’s patent licensing revenue is calculated based on smartphone manufacturers' shipment volumes. Compiled data shows that Apple is Qualcomm's largest customer, contributing more than 20% of its revenue.

The two companies were previously involved in protracted legal disputes over billions of dollars in patent fees and reached a licensing agreement in 2019.

Currently, due to the downturn in the smartphone market, Qualcomm is under greater operating pressure than expected. The company outsources its chip production and has stated that it is passing part of the cost increases onto its customers. The company claims that this will help margins recover over time. A memory chip shortage, driven by surging demand for artificial intelligence (AI) computing equipment, has already forced Qualcomm customers, including Apple, to cut smartphone production.