By Apple remains committed to developing its own cellular modem, despite encountering several obstacles and delays, according to Mark Gurman in his recent Power On newsletter for Bloomberg. The company’s strategy prioritizes long-term gains over immediate enhancements to its devices.
For more than ten years, Apple has depended on Qualcomm Inc. for modem chips, essential for linking iPhones and other devices to cellular networks. However, in 2018, during a legal dispute with Qualcomm, Apple initiated the development of its own modem design.
Apple’s In-House Modem Development: Challenges, Investment, and Long-Term Vision
- Project Setbacks: Apple’s in-house modem project has faced considerable obstacles, including performance limitations and overheating issues. These challenges have delayed the modem’s launch until at least next year, with a phased rollout expected over several years. As a result, Apple extended its supplier agreement with Qualcomm until March 2027.
- Significant Investment: Despite these setbacks, Apple is heavily investing in the project, allocating billions of dollars and employing thousands of engineers. However, according to Gurman, even Apple insiders admit that users may not notice immediate differences in the user experience.
- Long-Term Vision: Apple’s future plans involve integrating its modem design into a new wireless chip that will also manage Wi-Fi and Bluetooth connectivity. This integration could enhance device reliability and battery life. Additionally, there’s potential for combining all these functions into the device’s primary system on a chip (SoC), which could lower costs and save space within the iPhone.
Apple’s Strategic Modem Development: Investment, Future Innovations, and Industry Impact
- Future-Focused Investment: While the immediate advantages may not be visible, Apple is betting that this substantial investment will pave the way for future innovations in iPhone design and functionality. The company has a strong history of successfully creating custom silicon, including groundbreaking processors for the iPhone, iPad, and Mac.
- 6G Technology Development: In addition to modem development, Gurman’s newsletter highlights that Apple has been working on 6G technology for the past two years, though 6G is not expected to be deployed until at least 2030.
- Balancing Strategy and Competition: As Apple continues advancing its in-house modem project, the company must balance long-term strategic objectives with the immediate need to keep its devices competitive in the market. The outcome of this initiative could profoundly influence Apple’s future product designs and its relationships with existing suppliers such as Qualcomm and Broadcom.
