Apple is gearing up to launch its own series of cellular modem chips next year, replacing Qualcomm components, as reported by Bloomberg News. The tech giant aims to surpass Qualcomm’s technology by 2027. Qualcomm, known for designing modem chips connecting phones to data networks, has cautioned investors about Apple’s shift. The company has a deal to sell chips to Apple until 2026, with hopes that its expansion into laptops and AI-powered data centers can offset potential revenue drops. Apple’s new modem will debut in the iPhone SE update in 2022, with more advanced versions to follow.
Apple has been investing in its modem technology, acquiring Intel’s modem unit for $1 billion in 2019. The company consolidated its modem engineering with chip design efforts, signaling a commitment to self-designed chips. Apple also struck a multi-billion-dollar deal with Broadcom for 5G radio frequency components, potentially impacting suppliers like Skyworks Solutions and Qorvo. Qualcomm did not comment on the news, while Apple declined to provide a statement. The move to develop in-house modem chips reflects Apple’s drive for innovation and independence in its hardware components.
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