Qualcomm CEO downplays importance of Apple relationship after C1 modem
Qualcomm's CEO doesn't seem to be worried about losing one of its biggest customers as Apple shifts to in-house modems like the C1 for iPhone.
Qualcomm expects that its contract with Apple won't be renewed.
For over 15 years, Qualcomm's modem chips powered Apple's iPhones, enabling wireless connectivity to cellular networks. Analysts estimated that Apple paid over $2.5 billion in 2024 alone for Qualcomm's patent licenses, while the company's annual modem revenue from Apple is said to be between $5.7 billion and $5.9 billion.
Qualcomm CEO Cristiano Amon, in an appearance on Yahoo Finance's Opening Bid podcast, spotted by 9to5mac, revealed that the modem company is prepared to look well beyond the iPhone. Qualcomm's plans are based on the assumption that Apple will continue to use in-house modems going forward, meaning that the chipmaker will have to explore alternative avenues.
"That's our contract, you know, and if we don't get a new contract, that's what it is," explained the Qualcomm CEO. "And there's so much drama and association about the Apple relationship, which I think is not warranted, to be honest."
Amon's comment about unnecessary drama is arguably ironic, partly because of a relatively recent study, released by Qualcomm in late May 2025. The Qualcomm-funded study claimed Android phones with Snapdragon modems outperformed the iPhone 16e's C1 modem, though the comparison favored Qualcomm by design, unlike other tests.
Apple revealed the C1 modem in February 2025 with the release of the iPhone 16e. The new Apple-designed modem enabled better power efficiency, although it lacks support for mmWave.
The modem is also set to appear on the iPhone 17 Air in 2025, but other iPhones will continue to use Qualcomm modems as the two companies have a contract until March 2027. Qualcomm is under the impression that its Apple contract won't be renewed, which is a likely scenario.
Still, the Qualcomm CEO attempted to downplay the company's relationship with Apple, saying that Qualcomm has seen success with its modems on Android phones.
"We're planning our business assuming that they are going to use their own modem," said Amon. "And what's exciting about the company is all of this growth that we're creating, all of those other markets, including on Android."
Amon said that Qualcomm's Android business has "continued to grow." As for what the company could do beyond phone modems, Qualcomm is reportedly exploring the development of chips that would connect to Nvidia's AI processors, among other initiatives.
These endeavors, understandably, won't have any impact on future iPhone models. Qualcomm's contract with Apple is set to expire in 2027, and Apple is already said to be working on an improved C1 and even a C2 modem, and there have even been rumors of a modem-equipped MacBook Pro.
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Comments
- Official Qualcomm Statement 2013
"Apple's 64-bit A7 Chip 'Set off Panic in the Industry'", "the A7 'sent ripples of disbelief' throughout their [Qualcomm] offices"
- Qualcomm Employees
Not sure losing such a big revenue stream warrants a "that's what it is" blasé response from the CEO. Downplay it all you want, but it's actually quite a big thing.
its not the entry level C1 Qualcomm has to worry about. It’s the far more capable successors. Especially the 6g stuff
However, it's lost revenue that they never expected to have in the first place.
Literally money for nothing.
It was only Intel failing to deliver that got them this current contract. Just a bonus. It also saw the end of a multi-billion dollar legal fight as Apple had no option but to abandon that.
They have always known it was temporary. The contract itself was temporary. Right from the start.
What isn't temporary are the patent royalties that Apple will continue to pay them.
Apple will want to contribute (just as it should IMO) and I can tell you for a fact that Huawei and Apple are working together (with others) in the EU on network sensing technologies.
But before that, 5.5G support is needed.
As reference we drove a stretch of 200km’s and the 16e never drops a call and when there is bad signal and distorted voice, the 16e recovers without any issue, while the QC drops or never recovers and you need to initiate a new call …
And we did not cover battery drain, the 16e shines in that department as well … what else can I say … QC will loose a lot of business, fortunately they can extort some more money via patents … even if they are FRAND, they do not seem to care about that.