Here Is How Much Revenue Qualcomm Will Generate From Its 5G Modem Sales To Apple’s iPhone 16 Series, Assuming The Initial Shipments Target Is Achieved

Apple is reported to continue using Qualcomm’s 5G modems for its iPhones until March 2027, and even though the company has plans to unveil a custom solution that will be found in the low-cost iPhone SE 4 next year, a large part of its baseband shipments will come from its exclusive supply chain partner. For Qualcomm, it is a win-win situation, and as Apple continues to ship more iPhone 16 units in 2024, the San Diego firm will be walking happily to the bank. We have formed an estimate of just how much revenue the 5G modem manufacturer will make through iPhone 16 sales, but we have to take into account Apple’s initial shipment target for the year.

An estimated $2.52 billion will be generated for Qualcomm through iPhone 16 5G modem sales alone, but consistent demand will play a pivotal role

Every iPhone 16 model is outfitted with the SDX71M 5G modem, as revealed in a recent teardown. While demand will fluctuate in these last few months, prior to Apple’s official announcement that happened in September, the company reportedly had a shipment target of 90 million units for 2024. This figure is 10 percent higher than the iPhone 15 lineup that launched last year, meaning an extensive payday for Qualcomm, but just how much? Well, based upon the ‘Bill Of Materials’ breakdown provided by TD Cowen, it was revealed that the iPhone 16 Pro Max was estimated to cost $32 more to make than the iPhone 15 Pro Max.

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While that is a slightly higher sum, we focus on the image that mentions ‘Modem + Transceiver,’ which is estimated to cost Apple $28 per unit. Assuming the Cupertino giant successfully achieves its 90-million shipment target, that will equal $2.52 billion in 5G modem sales for Qualcomm, but that is not the end of the story. The chipset manufacturer has a multitude of 5G modem patents that it leverages to earn a licensing fee from Apple, and without