Qualcomm Renews Licensing Pact With Apple Starting in 2027

Qualcomm Inc. said it has renewed its global licensing pact with Apple Inc., effective in April 2027, ensuring the iPhone maker will remain a key customer in the near term.

“We are pleased to extend the Apple license agreement,” said John Han, the Qualcomm executive vice president in charge of licensing. The length of the new agreement was not included in the statement on Thursday announcing the renewal.

Shares of Qualcomm and Apple were little changed in premarket trading in New York.

The chipmaker, which is the largest maker of smartphone processors, gets licensing revenue from handset makers based on the number of units shipped. Apple is Qualcomm’s largest customer — accounting for more than a fifth of revenue, according to data compiled by Bloomberg.

The two companies entered a licensing agreement in 2019, capping off a protracted legal battle over billions of dollars in licensing fees.

Qualcomm has been getting squeezed more than expected by a smartphone slump. The company, which outsources production of its chips, said it’s passing along some of its cost increases to customers. That will help profit margins recover over time, it has said. Memory-chip shortages — fueled by runaway demand for AI computers — have forced Qualcomm customers including Apple to produce fewer phones.

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