Apple is set to introduce its self-developed 5G modem with the release of the iPhone SE 4, expected in spring 2025. This move marks Apple's first significant step towards reducing its reliance on Qualcomm for modem chips. Reports from the supply chain indicate that Apple's 5G modem was completed around mid-July, with plans to use it in the iPhone SE 4 shortly thereafter.
The development of Apple's proprietary 5G modem gained momentum after acquiring a majority of Intel's smartphone modem business in 2019. This strategic move signals Apple's commitment to controlling long-term costs and advancing technological independence.
Historically, Apple's hardware innovations have not extended strongly into RF chip design, a field where competitors like Huawei have made significant inroads. Although Apple began working on RFIC design in 2019, the journey has been fraught with challenges. Apple's own hardware technology chief described the modem development process as extremely difficult, emphasizing its crucial role in ensuring stable network connections and data transmission.
Choosing the iPhone SE 4 as the initial test platform for its 5G modem reflects Apple's cautious approach, given the company's confidence levels in the technology. Success with this model could lead to the inclusion of the self-developed modem in the iPhone 17 series, potentially enhancing communication performance and addressing ongoing signal issues reported by users.
Currently, all marketed iPhones utilize Qualcomm's modems. By 2023, Apple's reliance on Qualcomm has incurred a cost of approximately $7.2 billion. The agreement to extend Qualcomm's supply of 5G modems to Apple until 2026 suggests a phased approach to replacing Qualcomm chips with Apple's own designs.
Apple's dependency on Qualcomm began in 2011, including a financial incentive in the agreement. However, Apple's attempt to diversify suppliers started with the iPhone 7 series using Intel modems in 2016. Subsequent lawsuits and settlements cost Apple significantly, leading to a renewed six-year modem supply agreement with Qualcomm in 2019.
Despite setbacks, Apple continued its push toward modem independence by acquiring Intel's smartphone modem business, gaining significant intellectual property and workforce resources to advance its 5G technology developments.
Earlier predictions suggested Apple's in-house 5G modem would feature in the iPhone 15 series. Nevertheless, a new agreement with Qualcomm has shifted expectations, aligning Apple's use of Qualcomm's Snapdragon 5G modems through 2026. Nonetheless, the production of Apple's 5G modem, likely to appear first in the iPhone SE 4, will eventually challenge Qualcomm's exclusive supply history.
