Qualcomm and Apple renew global licensing agreement to take effect in April 2027

Qualcomm (QCOM.US) has announced that it has renewed its global licensing agreement with Apple (AAPL.US), with the new agreement set to take effect in April 2027. As the world's largest smartphone processor manufacturer, Qualcomm charges licensing fees based on handset manufacturers' shipping volumes. John Han, Qualcomm's Executive Vice President responsible for licensing, stated: "We are pleased to extend our licensing agreement with Apple." Due to a sluggish smartphone market, Qualcomm is facing greater pressure than expected. The company outsources chip production and has indicated that it is passing part of the cost increases on to customers. Qualcomm stated that this move will help the company's profit margins gradually recover over time. Driven by surging demand for AI computing, the shortage of memory chips has worsened, forcing Qualcomm's customers, including Apple, to reduce smartphone production.