Qualcomm had a lot to talk about last week.
Beyond debuting new silicon designed to run AI processing on smartphones, glasses and earbuds, the San Diego semiconductor giant ended the event on Sept 24 with a major update: a one-line statement confirming it extended its licensing agreement with Apple starting April 1, 2027 – the same day the current agreement was set to expire.
Here is what you need to know:
The Apple deal
Qualcomm’s chips enable Apple’s iPhones – along with Android and Samsung devices – to connect to cellular networks. The chipmaker is a leader in the space and holds a patent on the crucial tech.
In 2017, Apple attempted to reduce its dependence on Qualcomm and began developing its own modems.
Years of litigation ensued, leading analysts to assume Apple would officially sever ties with Qualcomm when the licensing patent expired on April 1, 2027.
In the time since, Apple paid US$1bil (RM4.08bil) to Intel for its modem business and spent over six years building its own chip to reduce its reliance on Qualcomm.
“The question of ‘will they or won’t they’ around this issue” is answered, at least for now, said Stacy Rasgon, a semiconductor analyst for Bernstein.
Rasgon’s firm estimates the deal will generate US$1.5bil (RM6.13bil) to US$1.7bil (RM6.94bil) in annual revenue, or roughly US$7.50 (RM30) per phone. But those are estimates based on historical data, as the official press release was only one sentence.
Everyone except Qualcomm and Apple remains in the dark about specific terms, Rasgon said, noting that analysts and investors are eager to learn the duration of the deal. He expects more details during the company’s next earnings call on Nov 4.
Next-generation devices
Qualcomm – and most tech companies today – are pushing a narrative that artificial intelligence will change everything.
And while AI has entered everyday conversations and made writing emails a bit easier, it has yet to meaningfully impact daily life for most people.
After all, who actually has an AI assistant?
During his keynote speech, Qualcomm CEO Cristiano Amon outlined how to get one during what he calls the “agentic age.”
We’re moving from interacting with tools to collaborating with the technology, Amon explained.
To illustrate what that means, Qualcomm demonstrated smart glasses integrated with Mastercard.
In a shopping demonstration, a user wearing smart glasses asked an AI agent integrated into the glasses to compare an in-store computer price against online deals.
The agent scanned options, found a cheaper deal online, placed the order and confirmed a delivery date.
The agent was able to see the environment, hear the user, and process the request natively on the glasses, with the help of Qualcomm’s new silicon.
“Traditional digital experiences wait for a query. Proactive agents can recognize when context and likely intent create an opportunity to help before the user begins a search,” said Sundar Subramanian, director of AI product management at Qualcomm.
Qualcomm executives described the conventional “burdens” of shopping – discovering items, evaluating purchases and checking your wallet to see if you can afford the product.
“Technology has made each step easier,” Subramanian said. But don’t worry, “the overall cognitive burden still sits largely with the user.”
Whether that sounds convenient or dystopian, these AI agents are already arriving. – The San Diego Union-Tribune/Tribune News Service
