Qualcomm CEO Cristian Amon said on Wednesday that he does
not expect to continue providing Apple with a modem chip for its iPhones after
2024, but that it's ultimately up to the Tim Cook-led company.
"We’re making no plans for 2024, my planning assumption
is we’re not providing [Apple] a modem in ’24, but it’s their decision to
make," Amon said in an interview with CNBC from the Mobile World Congress.
Qualcomm and Apple shares were both fractionally higher in
premarket trading on Wednesday.
In January, TF International Securities analyst Ming-Chi Kuo
said Qualcomm would likely stay the "exclusive supplier" of baseband
chips for the iPhone 16 series, due in 2024.
Kuo said in June that he discovered that Apple had not yet
been successful with its development to replace Qualcomm's modem. Instead, the
tech giant is likely to keep using Qualcomm for 100% of its supplies, compared
to Qualcomm's previous estimates of 20%.
At the time, Kuo estimated the San Diego-based tech Qualcomm
will "likely" beat Wall Street's estimates for the second half of
2023 and first of 2024 for both revenue and earnings.
Apple purchased Intel's modem business in 2019 and is widely
believed to be working on its own chip for use in its devices.
Last month, Qualcomm showed off the semiconductor industry's
first advanced-ready 5G modem-RF chip that can be used in smartphones, mixed
reality headsets, 5G networks and other areas.
Amon also addressed the U.S lawsuit filed against Qualcomm
by British semiconductor firm Arm. The legal battle between two of the world’s
biggest chip designers comes as Qualcomm seeks to grow in the PC market; to do
so, it acquired a company called Nuvia, whose server chips are based on Arm
architecture.
Arm contends it needs a license to use the chip designs and
is seeking damages and to force Qualcomm to destroy various information and
hardware related to the purchase.
“It’s very unfortunate, this litigation, but the reality is
we have very broad rights to the Arm IP, one of their early licensees,” Amon
said. “We feel pretty good about a solution and we’re just moving forward with
our plans. And all of our customers are very excited about what we’re doing in
this area.”
On a report by the Wall Street Journal that the U.S.
government is considering revoking export licenses for U.S. suppliers to
Huawei, Amon said: “We do have licenses to sell 4G chips to Huawei. We’re being
compliant through our license, but we have not yet seen any action.”
He called the U.S. Chips and Science Act a “great thing”
that had encouraged companies like TSMC and Samsung to build facilities in the
country.
A revocation of its license would result in a financial hit
to Qualcomm, he said, but stressed the company was more diversified and
provided companies including Samsung and Honor with modems and was growing in
automotives and the internet of things.
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