Apple will transition to its own custom 5G modem from 2023 at the earliest, according to a new report from reliable Apple analyst Ming-Chi Kuo. In his latest research note, he said that the company was working hard to launch its first 5G modem, but added it still needs time.
Back in 2018, Apple’s relationship with Qualcomm took a dark turn, and the two companies went to court over ‘unfair patent licensing terms’.
Apple had hoped it could use Intel for its cellular modems, steering clear of Qualcomm, but as the deadline for Apple’s first 5G iPhone drew closer, it became evident that Intel could not meet Apple’s requirements for a 5G chip.
In 2019, Apple settled with Qualcomm and also acquired Intel’s engineering group, with hopes to launch its own modem in the following years.
Apple’s settlement with Qualcomm means the company has six years to use its modems, and in that time, it hopes to launch its own custom modems and baseband, which is something very few other companies have tried. That’s because the complexity of launching a 5G modem is immense, requiring billions in research and development. For smaller manufacturers, it would be an impossible task.
Last year, Apple’s Johny Srouji confirmed in a note to employees that the firm had begun work on a 5G modem, which corroborated reports that the firm would launch its first modem in 2022. However, Kuo’s new estimation suggests that Apple needs a while longer, and will now launch its own modem in 2023, planning to ship the modem ‘in volume’ in new iPhones.
Like Apple’s transition to custom M1 chips, building its own modem will allow the company to unify the modem and SoC, achieving better power efficiency and better performance. It’s also likely that Apple will cut costs in the process.
Are you looking forward to Apple’s custom chip? Let us know and check back soon for more.