The full story
Would you rather own the chips or the toll?
Qualcomm owns key patents behind 4G and 5G. Phone makers pay a fee on each phone they sell, set as a percent of its price. That holds even when the chip inside isn't Qualcomm's.
- Apple put its own C2 modem in the iPhone 18 Pro, and renewed its Qualcomm licence in Sep 2026
- Huawei runs on its own Kirin chips and signed a new licence in Oct 2026
- Samsung uses its own Exynos chip in many Galaxy S26 phones and is licensed to 2030
The fees came to $5.6B in fiscal 2025. Qualcomm kept 72¢ of each $1 as profit before tax. Its chip business kept 30¢.
Caveat: the fee per phone is secret. Huawei's deal still needs regulators' approval.
Why it matters: Apple leaving Qualcomm's chips doesn't end Qualcomm's toll.
