Qualcomm shares surged 4 percent after deal announcement.
In a major win for Qualcomm, the wireless tech company has struck a new chips agreement with Apple. Their previous deal to provide 5G modem chips was inked in 2019 and was set to conclude this year. The new deal signed Monday means it will continue to be a supplier to the iPhone maker through 2026.
The deal also means that Qualcomm will maintain its patent licensing agreement with Apple, which would mean millions in royalty revenue for the chipmaker. Qualcomm shares shot up by 4 percent soon after the deal’s announcement.
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