It pays to have a backup source for your 5G modem.
Per noted Apple analyst Ming-Chi Kuo, supply-side surveys have indicated that Apple has been unable to develop a custom 5G modem of its own, in time for the 2023 iPhone series, or the iPhone 15.
Kuo has stated that he believes Apple will resort to using Qualcomm models for the 2023 model iPhones. Previously, Qualcomm executives had warned investors that it expected to lose up to 80 percent of the Apple business by 2023, as Apple planned to use its own chips instead.
Other reports have suggested that Apple has been on track and is talking with suppliers about 2023. While it’s possible that both these things could be true, Apple’s in-house modem may arrive first in a less risky lower volume product, like an iPad for instance, before powering the iPhone juggernaut.
It’s expected that Apple’s eventual goal is to create its own custom-designed 5G modem for the iPhone. This would likely yield both performance and power efficiency gains as well as help to improve the company’s profit margins, as it would be able to keep things in-house while bypassing Qualcomm as a supplier for the component. Even so, standards-essential patent royalty payments to Qualcomm would continue regardless.
Apple’s silicon teams have been developing its own modems for about five years, accelerated by the $1 billion acquisition of Intel’s modem business in 2019.
The April 2019 settlement meant that Apple and Qualcomm entered a six year licensing agreement, with an option to extend for an additional two years. This essentially gave Apple until 2027 to develop and engineer an in-house solution. Meanwhile, Intel exited the modem business altogether, and sold off its assets and employees to Apple.
Stay tuned for additional details as they become available.
Via 9to5Mac and @mingchikuo