Apple has extended its patent-licensing agreement with Qualcomm, securing continued access to important cellular technology despite Apple’s longer-term efforts to develop more of its own components. 

Qualcomm announced the extension on Thursday. 

The agreement is important because Qualcomm has historically supplied Apple with modem technology used to connect iPhones to cellular networks. 

Apple has been working to reduce its dependence on outside suppliers by developing more components internally.

The extension means the two companies will continue their licensing relationship even as Apple works toward greater control over its technology supply chain. 

Apple’s strategy has included developing its own modem technology and other custom-designed components.

For Qualcomm, licensing agreements with major smartphone manufacturers are an important part of its business model. 

The company earns revenue not only from selling chips but also from licensing patents covering wireless communication technologies.

The agreement therefore provides continued commercial ties between two major technology companies while Apple gradually develops more of its own hardware capabilities. 

The arrangement also highlights the importance of intellectual property in the global smartphone industry.

Source: Reuters.