Currently equipped with Qualcomm 5G modems, iPhones could within two years benefit from 5G chips developed in-house. This would allow, among other things, Apple to separate from a circumstantial partner with which the firm had been forced to mend after long months of legal conflict.
The current iPhone 12/12 Pro still rely on a Qualcomm modem
Clearly, Apple wants to have control over every element of its iPhone. And once again, it is Ming-Chi Kuo who locates the essential information. Looking closely at the brand’s supply chain, the TF Securities analyst understands that the Cupertino company will be ready to use its own 5G chips on its iPhones. If the matter is confirmed, Apple could then part ways, perhaps partially initially, Qualcomm, its current supplier of 5G modems.
It must be said that, if Apple and Qualcomm agree enough to collaborate again, the two companies were fighting in court two years ago. An agreement reached late between the two parties had nevertheless enabled the iPhone manufacturer to obtain the precious 5G chips in sufficient numbers to equip its iPhone 12 and 12 Pro. A visibly provisional solution for Apple, which will soon be able to completely internalize the design of modems compatible with the new cellular network.
Qualcomm must prepare to lose a big customer
According to Ming-Chi Kuo, Apple could thus be able to launch its first iPhones equipped with homemade 5G chips in 2023 ” as soon as possible”. A postponement to the following year is therefore not to be ruled out if we are to believe the analyst’s report, consulted by MacRumors. Anyway, when Apple can stand on its own, Qualcomm will have to expand into new markets to compensate for the loss of revenue that the departure of this (very) large customer will induce.
According to Kuo, Qualcomm “will have to fight for more orders in the entry level market», Which will directly confront him with Taiwanese MediaTek. But let’s also remember that Qualcomm plans to compete more strongly with Intel and AMD in the market for processors for laptops, with a chip developed in-house by a team of renowned engineers. This could be another lever to compensate for the loss of Apple’s orders within 2 to 3 years.
Apple has been working on its own 5G chip since early 2020
In development since early 2020, Apple’s 5G modems should allow the firm to offer higher transfer speeds, but also lower latency than Qualcomm products, notes MacRumors.
This good performance would not be very surprising: this development is not starting from scratch at Apple, which in 2019 bought most of the Intel division dedicated to mobile modems. This takeover will probably have allowed Tim Cook and his family to gain several years of R&D. The firm has never hidden the objective of this acquisition. From the takeover, the apple brand explained that this was aimed at “ofaccelerate the development of our future products and allow Apple to differentiate itself further in the future”.
