Apple Plans to Gradually Replace Qualcomm’s 5G Modems with its OwnChips
Cupertino, California – Apple is reportedly developing its own5G modem chips and plans to start shipping them in small quantities in 2025, with a significant ramp-up in 2026and 2027. This move, according to renowned Apple analyst Ming-Chi Kuo, could have a major impact on Qualcomm’s 5Gchip shipments and patent licensing sales.
Kuo estimates that Apple’s self-developed 5G modem will be shipped in 35 to 40 million units in 2025, increasing to 90 to110 million units in 2026 and 160 to 180 million units in 2027.
The initial rollout of Apple’s 5G modem is expected to belimited to the iPhone SE 4 and iPhone 17 Air models in 2025. The new iPhone SE 4 is rumored to feature an OLED display, a new A-series chip, and a USB-C port. The iPhone 17 Air, on the other hand, is expected tofocus on a slim design but may lack some of the features found in the iPhone 17 Pro and Pro Max models.
Apple’s decision to develop its own 5G modem chips is a significant departure from its reliance on Qualcomm for this technology. The move is likely driven by Apple’s desire to gaingreater control over its hardware and software ecosystem, as well as to potentially reduce its dependence on Qualcomm.
The development of Apple’s 5G modem has been a long-running project, with reports suggesting that the company has been working on it for several years. However, the project has faced several delays, withsome reports suggesting that Apple encountered technical challenges in developing a modem that could meet its performance and power consumption requirements.
Despite these challenges, Apple has reportedly invested heavily in the development of its 5G modem, and it is now believed to be nearing completion. The company’s decision to start shipping the chip in2025 suggests that it is confident in its ability to deliver a competitive product.
The shift away from Qualcomm could have a significant impact on the company’s business. Qualcomm is a major supplier of 5G modem chips to Apple, and the loss of this business could have a negative impact on its revenue. However, Qualcomm has already begun to diversify its customer base, and it is likely that it will be able to mitigate the impact of Apple’s move.
The development of Apple’s 5G modem is a significant development in the mobile industry. It could potentially lead to a shift in the power dynamics betweenApple and Qualcomm, and it could also have a major impact on the development of 5G technology.
Here are some of the potential implications of Apple’s move:
- Increased competition in the 5G modem market: Apple’s entry into the 5G modem market could lead toincreased competition, which could benefit consumers in the form of lower prices and better performance.
- Faster innovation in 5G technology: Apple’s investment in 5G modem technology could lead to faster innovation in the development of 5G technology, which could benefit consumers in the form of faster speeds and morereliable connectivity.
- Greater control over the iPhone ecosystem: Apple’s development of its own 5G modem could give it greater control over the iPhone ecosystem, which could allow it to optimize the performance of its devices and to introduce new features more quickly.
However, there are also some potential downsides toApple’s move:
- Increased costs for Apple: Developing its own 5G modem could be expensive for Apple, and it could lead to higher prices for iPhones.
- Potential for technical challenges: Apple’s 5G modem could face technical challenges, which could lead to delays in its rolloutor performance issues.
- Impact on Qualcomm’s business: Apple’s move could have a negative impact on Qualcomm’s business, which could lead to job losses or lower investment in research and development.
Overall, Apple’s decision to develop its own 5G modem is a significant move that couldhave a major impact on the mobile industry. It remains to be seen how this move will play out, but it is likely to have a significant impact on the future of 5G technology.
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