Apple's Self-Developed 5G Modem Chip is Coming Soon, Posing a Major Challenge to Qualcomm

Apple's Self-Developed 5G Modem Chip is Coming Soon, Posing a Major Challenge to Qualcomm

Apple's Self-Developed 5G Modem Chip is Coming Soon, Posing a Major Challenge to Qualcomm

According to Fast Technology on August 13th, reports suggest that Apple plans to introduce its own 5G modem chip for the first time in the iPhone 17 series, slated for release in 2025. This news signals Apple's intention to further reduce its reliance on Qualcomm and achieve greater autonomy in key technologies.

Ever since Apple acquired Intel's smartphone modem chip business for $1 billion in 2019, the market has eagerly awaited the unveiling of Apple's self-developed 5G modem. However, Apple's development journey has not been smooth sailing. The upcoming iPhone 16 series will reportedly not feature the self-developed 5G modem, with estimations pointing towards the iPhone 17 series being the earliest release for this chip, potentially available only in select models.

Despite these hurdles, analyst Chris Caso points out the significant implications of Apple's self-developed 5G modem. It represents a major step forward in Apple's efforts to break free from external suppliers for critical technologies and take control of its supply chain.

The introduction of Apple's self-developed 5G modem chip is expected to deal a substantial blow to Qualcomm. According to reports, Qualcomm's revenue from Apple is projected to decline by 35% year-on-year in 2025 and an additional 35% in 2026. This trend indicates that the success of Apple's self-developed 5G modem chip could significantly impact Qualcomm's market share and future prospects.

It's worth noting that while Apple plans to adopt its own 5G modem in some iPhone 17 series models, new iPhones released by US telecommunications providers are expected to continue featuring Qualcomm's 5G modem, ensuring compatibility with the dominant mmWave (millimeter wave) frequency band in the US. This indicates that Apple still needs to rely on Qualcomm's technology to meet specific demands in the US market.

The launch of Apple's self-developed 5G modem chip is undoubtedly a momentous event in the mobile communications landscape. It not only marks a breakthrough in Apple's key technology advancements but also signifies a new competitive landscape for the future of the smartphone market. Qualcomm, currently the world's largest modem chip supplier, will face a challenge to its market share and standing by Apple's self-developed chip. How this challenge will reshape the future of the smartphone market remains to be seen.