June 23, 2024
Apple 5G Modem Efforts Fall Further Behind [Report]

Apple 5G Modem Efforts Fall Further Behind [Report]

Posted November 16, 2023 at 11:27pm by iClarified
Apple has fallen further behind in its effort to produce a 5G modem that could replace Qualcomm's modem chip for the iPhone, according to a new Bloomberg report.

After already delaying a plan to have an in-house chip ready by next year, Apple is now likely to miss a goal to ship the component by the spring of 2025, according to people familiar with the situation. That would postpone the release until at least the end of 2025 or early 2026 — the final year of Apple's recently extended contract with Qualcomm.

The snag is said to reflect the enormity of the challenge Apple faces in building its own modem. The chip has to seamlessly work with hundreds of carriers around the world and perform at least as well as Qualcomm's.

Bloomberg says thousands of employees have been working on the project since 2008, but Apple still remains years away from launch. While it's hoping to achieve data download rates faster than current technology, sources tell the site that's unlikely.

In September, Apple renewed its deal with Qualcomm, indicating that its 5G modem was not yet ready for production. Qualcomm then confirmed that would supply 5G modems to Apple for iPhone launches in 2024, 2025, and 2026.

Currently, Qualcomm says it expects to provide at least 20% of modems for Apple in 2026, but that could go higher if Apple's chip is not ready.

"We are planning as if we're going to get 20% share," Akash Palkhiwala, Qualcomm's CFO told analysts this month. "But to the extent that we get more than that, that'd be upside."

Apple was expected to debut its modem with a new iPhone SE in 2024. That was then postponed until 2025 and now sources say the launch might not come until a year after that. Following the iPhone SE, Apple was expected to bring its modem to iPad and Apple Watch and then finally its flagship iPhone models.

More details in the full report linked below...

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Apple 5G Modem Efforts Fall Further Behind [Report]
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