iPhone maker Apple’s legal surrender blow for supply chain strategy

Apple Inc.’s legal surrender this week is a blow for the company’s supply chain strategy, and one of the biggest tests of its push to cut reliance on providers of key components.

The iPhone maker struck a deal Tuesday with Qualcomm Inc. to halt all litigation and start using the chipmaker’s modems again, likely including important new 5G versions. That ended a bruising two-year battle over technology that underpins all smartphones.

The agreement includes a six-year licensing pact, creating a telling new deadline for Apple to design its own modems and finally cut ties to Qualcomm. That’s an eternity in the technology business and shows how difficult it is to make this crucial component.