Strong iPhone 12 demand pushes Qualcomm to number one chip designer revenue

AppleInsiderAppleInsider
Posted:
in General Discussion
The launch of the iPhone 12 lineup has been a bright spot for Qualcomm, launching Apple's 5G modem chipmaker to the number one spot in a ranking of IC design companies by revenue.

Credit: Andrew O'Hara, AppleInsider
Credit: Andrew O'Hara, AppleInsider


Despite the fact that the iPhone 12 and iPhone 12 Pro devices launched later in the year than usual, the San Diego-based chipmaker retook the top spot with $4.96 billion in a quarterly revenue. That's a 37.6% increase year-over-year, according to Trendforce research.

Trendforce attributes Qualcomm's rise to a number of factors, including it entering the Apple supply chain earlier in 2020 and the fact that 5G adoption has been steadily increasing.

Apple and Qualcomm ended their years-long, tortuous legal dispute in 2019. The Cupertino tech giant signed a multi-year supply contract with Qualcomm and agreed to pay between $4.5 billion and $4.7 billion to settle the patent battle.

Although that contract requires Apple to source chips from Qualcomm for a set period of time, Apple is also said to be working on its own in-house modem chips.

In 2020, Apple was said to have officially kicked off development of first-party cellular modems.

Apple previously used Intel modems in its iPhone until 2018, when the company was unable to deliver 5G chips in time for a 2020 release. After Apple and Qualcomm settled their patent spat, Intel ceased development of its 5G modems and sold its corresponding patent portfolio to Apple.

The deal with Qualcomm includes a six-year supply licensing agreement that took effect on April 1, 2019.

Comments

  • Reply 1 of 14
    22july201322july2013 Posts: 3,735member
    Why would Apple work on its own in-house modem chips if it appears that Apple made a 6-year deal with Qualcomm to use its chips (exclusively?)
  • Reply 2 of 14
    yojimbo007yojimbo007 Posts: 1,165member
    22july2013 said:
    Why would Apple work on its own in-house modem chips if it appears that Apple made a 6-year deal with Qualcomm to use its chips (exclusively?)
    Not sure of the details of the contract between Qualcomm and Apple.. But there is a reason Apple bought Intels cellphone  Modem business for 1 billion in 2019.
     Apple seems to be all in for making their own chips as they have proven they are more than capable of kicking  serious Arse  with their A and M chips.


    watto_cobra
  • Reply 3 of 14
    GG1GG1 Posts: 483member
    yojimbo007 said:
    22july2013 said:
    Why would Apple work on its own in-house modem chips if it appears that Apple made a 6-year deal with Qualcomm to use its chips (exclusively?)
    Not sure of the details of the contract between Qualcomm and Apple.. But there is a reason Apple bought Intels cellphone  Modem business for 1 billion in 2019.
     Apple seems to be all in for making their own chips as they have proven they are more than capable of kicking  serious Arse  with their A and M chips.


    I highly believe Apple bought Intel (nee Infineon) primarily for the cellular radio patents to allow Apple to build their own modem chip. Without patents, Apple would probably not be able to sell their own modem chip. As we've seen with the M1, Apple's chip design team continues to excel at anything they set their mind to.
    watto_cobra
  • Reply 4 of 14
    crowleycrowley Posts: 10,453member
    22july2013 said:
    Why would Apple work on its own in-house modem chips if it appears that Apple made a 6-year deal with Qualcomm to use its chips (exclusively?)
    Because 6 years is a finite period of time?
    h4y3s
  • Reply 5 of 14
    Rayz2016Rayz2016 Posts: 6,957member
    GG1 said:
    yojimbo007 said:
    22july2013 said:
    Why would Apple work on its own in-house modem chips if it appears that Apple made a 6-year deal with Qualcomm to use its chips (exclusively?)
    Not sure of the details of the contract between Qualcomm and Apple.. But there is a reason Apple bought Intels cellphone  Modem business for 1 billion in 2019.
     Apple seems to be all in for making their own chips as they have proven they are more than capable of kicking  serious Arse  with their A and M chips.


    I highly believe Apple bought Intel (nee Infineon) primarily for the cellular radio patents to allow Apple to build their own modem chip. Without patents, Apple would probably not be able to sell their own modem chip. As we've seen with the M1, Apple's chip design team continues to excel at anything they set their mind to.
    What has Apple done in the past ten years to make you think they’d sell their own modem chips?
  • Reply 6 of 14
    Rayz2016Rayz2016 Posts: 6,957member

    22july2013 said:
    Why would Apple work on its own in-house modem chips if it appears that Apple made a 6-year deal with Qualcomm to use its chips (exclusively?)
    Because when Intel pulled out of the modem chip market, Qualcomm had Apple over a barrel. Even if their chips are ready in under six years, they’ll still be paying money to Qualcomm for ending the deal early. 

    When Tim Cook heard that Intel had failed them yet again, he looked up calmly from his impractically fragile glass desk and said, “I want those desktop chips ready to go, like, yesterday.”
    muthuk_vanalingamwatto_cobra
  • Reply 7 of 14
    sflocalsflocal Posts: 6,136member
    22july2013 said:
    Why would Apple work on its own in-house modem chips if it appears that Apple made a 6-year deal with Qualcomm to use its chips (exclusively?)
    Even QC can see the writing on the wall.  There will be a day when Apple comes out with their own Apple Silicon modem.  A best-case scenario will be Apple doing some kind of licensing agreement with QC to use in its own chips... of course only if QC allows it.  Even if they don't, Apple has the resources, the money, and the in-house talent (or will get it) and eventually kick QC to the curb.  QC might as well enjoy the ride and make some serious longer-term business decisions because when that well dries up, it ain't getting filled again.
    watto_cobra
  • Reply 8 of 14
    ppietrappietra Posts: 288member
    Why would Apple work on its own in-house modem chips if it appears that Apple made a 6-year deal with Qualcomm to use its chips (exclusively?)
    No one knows if it is an exclusive deal that would forbid Apple from using its own chips in any of the dozen different products that Apple builds.
    We certainly cannot assume that Apple is stupid. If it’s investing in building its own modem then it already has a plan for where and when to use it. And considering how expensive Qualcomm 5G modems seem to be...
    watto_cobra
  • Reply 9 of 14
    BeatsBeats Posts: 3,073member
    22july2013 said:
    Why would Apple work on its own in-house modem chips if it appears that Apple made a 6-year deal with Qualcomm to use its chips (exclusively?)
    Could be for other tech and products like Macs. In 4 years Apple will have a beast of an iPhone modem chip. Probably to be integrated into A18.
    watto_cobra
  • Reply 10 of 14
    GG1GG1 Posts: 483member
    Rayz2016 said:
    GG1 said:
    Why would Apple work on its own in-house modem chips if it appears that Apple made a 6-year deal with Qualcomm to use its chips (exclusively?)
    Not sure of the details of the contract between Qualcomm and Apple.. But there is a reason Apple bought Intels cellphone  Modem business for 1 billion in 2019.
     Apple seems to be all in for making their own chips as they have proven they are more than capable of kicking  serious Arse  with their A and M chips.


    I highly believe Apple bought Intel (nee Infineon) primarily for the cellular radio patents to allow Apple to build their own modem chip. Without patents, Apple would probably not be able to sell their own modem chip. As we've seen with the M1, Apple's chip design team continues to excel at anything they set their mind to.
    What has Apple done in the past ten years to make you think they’d sell their own modem chips?
    I meant when Apple sell the modem chip built into an iPhone (or iPad or MacBook). I doubt Apple will sell any of their separate chips on the open market.
    muthuk_vanalingammacguiwatto_cobra
  • Reply 11 of 14
    payecopayeco Posts: 581member
    This article is completely missing a key word here: fabless. They are number one in fabless chip designers. Intel is not included in this list since the have their own fabs. When I saw the headline and read the article I thought they had pushed past Intel. It wasn’t until I clicked the link and read the actual article I realized this was just for fabless companies. 
    watto_cobra
  • Reply 12 of 14
    bluefire1bluefire1 Posts: 1,311member
    There’s nothing like having QCOM chips inside your phone. Simply the best.
  • Reply 13 of 14
    macguimacgui Posts: 2,469member
    Rayz2016 said:
    What has Apple done in the past ten years to make you think they’d sell their own modem chips?
    That's a joke, right?
  • Reply 14 of 14
    macguimacgui Posts: 2,469member
    AI says:
    Strong iPhone 12 demand pushes Qualcomm to number one chip designer revenue

    For now. Good for them Apple isn't their only customer.

    watto_cobra
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