Qualcomm’s longstanding partnership with Apple is undergoing a significant transformation as Apple introduces its own in-house modem, the C1, signaling a move away from reliance on Qualcomm’s technology. This development has prompted Qualcomm CEO Cristiano Amon to address the evolving dynamics between the two tech giants.
Apple’s Transition to In-House Modems
For over 15 years, Qualcomm’s modem chips have been integral to Apple’s iPhones, facilitating seamless wireless connectivity. In 2024 alone, Apple reportedly paid over $2.5 billion for Qualcomm’s patent licenses, with annual modem revenue from Apple estimated between $5.7 billion and $5.9 billion. However, with the unveiling of the C1 modem in February 2025, Apple has taken a decisive step toward self-reliance in modem technology. The C1 debuted in the iPhone 16e, offering enhanced power efficiency, though it currently lacks support for mmWave technology. ([appleinsider.com](https://appleinsider.com/articles/25/02/21/apple-ends-its-qualcomm-dependency-with-the-new-c1-modem-chip?utm_source=openai))
Qualcomm’s Perspective on the Changing Relationship
In a recent appearance on Yahoo Finance’s Opening Bid podcast, Amon addressed the shifting relationship with Apple. He acknowledged the potential end of their contract, stating, That’s our contract, you know, and if we don’t get a new contract, that’s what it is. Amon emphasized that the focus on the Apple relationship is overblown, remarking, There’s so much drama and association about the Apple relationship, which I think is not warranted, to be honest.
Qualcomm’s Strategic Shift
Anticipating Apple’s move to in-house modems, Qualcomm has been proactively diversifying its portfolio. The company has expanded into sectors such as automotive, PCs, virtual and augmented reality, and smart devices. Amon highlighted the growth in Qualcomm’s Android business, stating, We’re planning our business assuming that they are going to use their own modem. And what’s exciting about the company is all of this growth that we’re creating, all of those other markets, including on Android.
The Competitive Landscape
The introduction of Apple’s C1 modem has intensified competition in the modem market. Qualcomm recently unveiled its X85 5G modem, boasting peak download speeds of up to 12.5 Gbps and advanced AI capabilities designed to enhance performance in areas with weak signals. Amon expressed confidence in Qualcomm’s technological edge, stating, It’s the first modem that has so much AI, it actually increases the range of performance of the modem so the modem can deal with weaker signals. ([macrumors.com](https://www.macrumors.com/2025/03/05/qualcomm-claims-x85-modem-better-than-apple/?utm_source=openai))
Future Outlook
Apple’s transition to in-house modems is expected to be gradual. The C1 modem is set to appear in the iPhone 17 Air in 2025, with other iPhone models continuing to use Qualcomm modems until the current contract expires in March 2027. Qualcomm anticipates that its contract with Apple will not be renewed, a scenario Amon seems prepared for. He emphasized Qualcomm’s success with Android devices and other markets, suggesting a strategic pivot away from dependence on Apple.
Conclusion
The evolving relationship between Apple and Qualcomm underscores the dynamic nature of the tech industry. As Apple moves toward greater hardware autonomy with its C1 modem, Qualcomm is focusing on innovation and diversification to maintain its competitive edge. This shift not only impacts the two companies but also influences the broader landscape of mobile technology and connectivity.
