Over the past several years, Apple has been developing its own 5G modem chip so that it does not need to rely on Qualcomm as a supplier, but according to Apple analyst Ming-Chi Kuo, Apple’s efforts “may have failed.”
Kuo says the “recent survey” indicates development on the chip has stalled, which means Qualcomm will remain the exclusive supplier of 5G chips for the 2023 iPhone models. Previously, Kuo thought Apple’s 2023 iPhones would use in-house designed modem chips instead of Qualcomm chips.
[Company Update] Qualcomm (QCOM.O) My latest survey suggests Apple’s iPhone 5G modem chip development may have failed, so Qualcomm will remain the exclusive supplier of 5G chips for the new 2H23 iPhone, with a 100% supply share (versus the company’s previous estimate of 20 %). – 郭明 (Ming-Chi Kuo) (mingchikuo) June 28, 2022
Qualcomm is now expected to supply 100% of the chips for 2023 iPhone models, instead of just 20%. Kuo expects Apple to continue developing its own 5G chips, but it will take longer for the work to be completed and satisfactory for use in iPhones and other devices.
It’s not clear why Apple can’t equip its modem chips in time for the iPhone launch in 2023, but the company has been aiming to move away from Qualcomm for years. Apple fought a protracted legal battle with Qualcomm and planned to use Intel 5G chips in the 2020 iPhones, but that was ultimately not possible because Intel was not able to manufacture 5G chips that meet Apple standards.
Apple ended up settling its lawsuit with Qualcomm in 2019, and since then it has used Qualcomm 5G modems in its iPhone and iPad ranges. Since then, Apple has been developing its own modem chip and has also bought the modem chip business from Intel to get a head start, and rumors suggest Apple was on track to launch it in 2023. Last year, Qualcomm said it expected to save 20 percent Only modem chips will be used in iPhones in 2023, but it looks like Qualcomm could produce chips for Apple for at least two more iPhone generations.
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