Apple Diversifies Supply Chain for Custom-Designed 5G Modem for iPhones in 2023 (2024)

FAQs

Will Apple make their own modem? ›

Apple's is still facing challenges in its bid to develop in-house modem chips. According to Bloomberg's Mark Gurman, "the complexity of replacing an intricate Qualcomm component" means Apple's plan to make its own modem probably won't happen until late 2025 or early 2026.

Last year, Apple extended the agreement for using Qualcomm's 5G modems until 2026 which has now been extended further until 2027.

Qualcomm has supplied this critical technology to Apple since the very first iPhone. In 2019, Apple purchased Intel's modem division in a deal valued at $1 billion, presumably with a view to designing and manufacturing its modems and breaking free from Qualcomm's stranglehold.

At the time, Apple and Qualcomm were waging a legal battle over modem royalties. But the two companies settled that suit in 2019, and Qualcomm agreed to supply 5G modem chips for the iPhone 12 in 2020 and beyond.

Right now, Apple uses modems made by Qualcomm, and it would like to make its own—just as it switched to its own silicon for the iPhone, iPad, Apple Watch and Mac. Gurman explains why the modem is so important: “Modems are extremely difficult to develop and require testing globally.

Apple Plans To Discontinue Development Of 5G Modem As It Failed To Perfect The Technology, Winding Down Years Of Investment. It was previously reported that Apple is working on its custom 5G chips to reduce dependency on Qualcomm.

Snapdragon® 5G Modem-RF systems are the world's first commercial modem-to-antenna 5G solution. Our modem-RF systems are designed to maximize data speeds and performance, support superior call connectivity and coverage, and extend battery life on mobile devices.

According to Pu, the iPhone 16 Pro models would feature the Qualcomm Snapdragon X75 modem, and the vanilla model would use the Qualcomm Snapdragon X70 modem that currently powers the entire iPhone 15 series. For reference, the Snapdragon X75 modem was launched in February last year.

A modem and a router are two of the most common devices found in a home network setup. A modem is connected to an internet service provider (ISP), while a router creates a local area network (LAN). Both devices are essential for a functioning home network.

Apple had planned to have its modem chip ready to use in the new iPhone models. But tests late last year found the chip was too slow and prone to overheating. Its circuit board was so big it would take up half an iPhone, making it unusable.

Does Apple use Qualcomm modem? ›

Apple has extended its modem chip licensing agreement with Qualcomm through March 2027, Qualcomm said today during its first earnings call of 2024. Apple's existing agreement has now been extended for two years, so we can expect to see Qualcomm modems in the next several iPhone generations.

Apple's efforts to develop a 5G modem for the iPhone, replacing Qualcomm, have faced significant delays due to technical challenges. The company had aimed to introduce its in-house modem by next year but now it seems unlikely to be achieved. The release may be pushed back until at least the end of 2025 or early 2026.

Apple is reportedly discontinuing the in-house modem development project. According to a report by MacRumors, the American tech giant is ceasing the development of custom 5G modem chips after several unsuccessful attempts.

As of 2023, Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest semiconductor chip manufacturer with a market share of over 50%. TSMC is followed by Samsung Electronics and Intel Corporation.

In 2019, Apple announced its decision to invest $1 billion to purchase most of Intel's modem development unit.

The AirPort Time Capsule (originally named Time Capsule) is a wireless router which was sold by Apple Inc., featuring network-attached storage (NAS) and a residential gateway router, and is one of Apple's AirPort products.