The launch of the iPhone 12 series has undoubtedly brought benefits to Qualcomm. Thanks to its large-scale supply to Apple, Qualcomm ranks first in the world in terms of revenue among microelectronic device design companies.
Despite the delayed release of the iPhone 12 and iPhone 12 Pro series, Qualcomm still took the first place again with a quarterly revenue of US$4.96 billion. According to market research website Trendforce, Qualcomm's revenue increased by 37.6% compared with the same period last year.
Trendforce attributes Qualcomm's significant gains to a number of factors, including its re-entry into Apple's supply chain in early 2020 and the steady growth in 5G market penetration.
Apple and Qualcomm ended their years-long legal dispute in 2019. The Cupertino-based 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 the contract requires Apple to purchase chips from Qualcomm within a specified time, Apple is also said to be developing its own internal modem chips. It is reported that in 2020, Apple officially started the development of its first cellular modem.
Apple had previously used Intel's modems in its iPhones, but the company was unable to deliver 5G chips in time this year, so the cooperation between the two parties ended. After Apple and Qualcomm settled their patent dispute, Intel stopped developing its 5G modems and sold its corresponding division to Apple.
Apple and Qualcomm signed a six-year supply license agreement that took effect on April 1, 2019. The iPhone 12 uses Qualcomm's X55 5G modem.
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