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Qualcomm on Monday (September 11) announced a new agreement with the tech giant Apple to supply 5G chips to the iPhone maker until at least 2026.

Qualcomm, a leading designer of modem chips that connect smartphones to mobile data networks, previously inked a supply deal with Apple back in 2019, marking the end of a protracted legal battle between the two companies.

As the earlier chip supply agreement nears its conclusion this year, the forthcoming iPhone launch, expected to be unveiled this Tuesday (September 12), will be the final product introduced under that arrangement.

Although specific financial details of this agreement remain undisclosed, Qualcomm has emphasised that the terms are "similar" to their previous arrangement.

Additionally, the patent licensing deal inked between Qualcomm and Apple in 2019 remains active, with an expiry date set for 2025, but an option for extension for an additional two years.

It's worth noting that Apple has been actively investing in developing its own modem technology, evident in its acquisition of Intel's modem unit in 2019, for a substantial $1 billion.

While Apple's roadmap for integrating its proprietary chips into their devices remains undisclosed, Qualcomm, in their financial projections, anticipates that only a fifth of Apple's iPhones will incorporate their chips by 2026.

However, it's important to remember that Qualcomm made a conservative projection regarding its partnership with Apple in 2021, which ultimately proved to be inaccurate when all iPhone 14 models released last year featured Qualcomm modems.