On September 24, Qualcomm (QCOM.O), the leading global manufacturer of smartphone processors, announced the renewal of its global licensing agreement with Apple (AAPL.O). The new agreement is scheduled to come into effect in April 2027. Qualcomm generates revenue by collecting licensing fees based on the shipment volumes of mobile phone manufacturers. John Han, Executive Vice President of Qualcomm, expressed his satisfaction with the extension of the agreement with Apple.

At present, the smartphone market is experiencing a downturn, and Qualcomm is grappling with pressure that exceeds initial expectations. To address this, the company, which outsources its chip production, is transferring some of the increased costs to its customers in a bid to gradually restore its profit margins. Moreover, the surge in demand for AI computing has exacerbated the shortage of memory chips. This situation has compelled Qualcomm's customers, including Apple, to reduce their mobile phone production.