Apple will introduce its long-awaited modem chips in 2025, a move that will significantly change its agreement with Qualcomm, its long-time supplier of modem components. According to a report from Bloomberg News, Apple’s new chips will first arrive in the iPhone SE, the company’s entry-level smartphone that is due to be upgraded for the first time starting in 2022, next year. All the while, Apple aims to increase the launch of its modem in anticipation of surpassing Qualcomm in 2027.
It is after increasing its focus on reducing external dependence that the company announced the move. The company spent $1 billion to buy Intel’s modem unit, then brought its modem engineering efforts into a unit responsible for designing custom processors in 2019. Apple has also invested large sums of money to develop its proprietary modem technology to implement control. its hardware.
For one, Qualcomm, which has long been an important partner of Apple and makes its modem chips to allow the company’s mobile devices to connect to 5G networks, informed investors that it will eventually divest itself of Qualcomm’s components and significantly change its revenue. Qualcomm, however, managed to secure a contract that ensures the company continues to supply Apple with chips until at least 2026. Investors are closely following Qualcomm’s diversification efforts, particularly in segments such as AI-based data centers and laptop chips, as revenue is available. expected to fall due to Apple’s downsizing.
Apple’s decision to produce a source modem is a bold move for independence. In line with the general strategy, the company signed a multibillion-dollar deal with Broadcom last year to work on parts of the 5G radio frequency spectrum. The impact of the deal will also be felt by other suppliers such as Skyworks Solutions and Qorvo, which have been Apple’s main wireless component suppliers for decades.
It wants to not only replace but also surpass Qualcomm by 2027. Such a move will significantly reshape the competitive landscape of the mobile chipset market, so, the eyes of the tech industry will be close to how well the company does in developing the following. production of modem technology.
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