Beijing: In 2023, the "vast majority" of iPhones will still use modem chips made by Qualcomm Inc. This came as a surprise to the company, which had projected a loss to Apple Inc.

In 2023, Qualcomm only intended to supply about 20% of the 5G modem components for the new iPhones, but now, as noted in the comments accompanying its earnings report on Wednesday, the company needs to supply its current market share. The stake is expected to be retained.

According to the statement, Apple will not switch to the internal modem design for the models it will release next year.

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After agreeing to use Qualcomm's technology in iPhones as part of a 2019 lawsuit settlement, Bloomberg News has reported that Apple has begun developing its own cellular modem. In 2020, Apple's head of chip development informed the team that work on the component was already underway.

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However, Bloomberg News claimed earlier this year that Apple's efforts were thwarted by prototype modems overheating and that the company wouldn't launch a switch until 2024 at the earliest.

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Qualcomm still believes that Apple will provide only modest financial support over the fiscal year 2025 period.

Investors in Qualcomm found little comfort in the moratorium. The company's forecast was much weaker than expected as it struggles to cope with a massive drop in smartphone demand. The shares saw a fall of up to 8.4% in late trading.