https://www.bloomberg.com/news/articles/2024-12-06/apple-s-three-year-modem-road-map-company-plans-to-beat-qualcomm-by-2027
https://www.androidcentral.com/phones/apples-c1-modem-in-the-iphone-16e-is-proof-that-we-dont-need-qualcomm-for-5g
https://www.reuters.com/technology/apple-reveals-first-custom-modem-chip-shifting-away-qualcomm-2025-02-19/
Apple isn’t the first one to make their own 5G modems, in fact they are late to the game. Samsung and Huawei both have their own modem chips. Other handset makers will choose from Qualcomm or MediaTek.
The simple view is that Apple is doing it to get rid of Qualcomm just like they did with Intel. But forgetting that Apple usually make these choices for eco-system wide strategies rather than just supply chain cost savings. Put it the other way around, if Qualcomm could have saved the deal with Apple by offering a better price, they would have, to save the 20% business they are getting from Apple.
Now, what’s the big deal with 5G modems? Think of it as a big part of all network connectivity. Apple already have plans to start using their own Bluetooth and Wi-Fi chip “Proxima”. Airpods already using their own Bluetooth in H1 and H2 chips. Ultra-wideband in U1 chip for Airtags and other devices for “spatial awareness”, that’s direction and short distances between these U1 enabled devices. C1 chip will obviously be a big part in 5G connectivity. Leaving only the wired ethernet chips not being done in-house (currently using Aquantia Aqtion).
Connectivity is a key part of our computing experience which is keeping people inside the Apple ecosystem. Just take Airpods as an example, the fact that it can easily connect to all Apple devices is still the key reason of its market success. Or making AirTags so easy to track items, was first to adopt ultra-wideband not just for proximity, but with direction to find the item. These are good examples on how having control over the connectivity experiences can help Apple to innovate on user experience beyond just iPhone.
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