Apple’s transition from using Qualcomm modems to its own 5G designs could roll out as soon as the next couple of years, TF International Securities analyst Ming-Chi Kuo suggests, in a research note seen by Cult of Mac.
Apple has started building its own cellular modems for use in future devices. Johny Srouji, Apple’s senior vice president of hardware technologies, made the announcement to employees Thursday during a virtual town hall meeting.
The company currently relies on Qualcomm modems, after restoring its relationship with the company following a prolonged clash over patents and royalties. However, Apple has made no bones about its desire to bring this part of its manufacturing in-house. It even bought Intel’s modem business for $1 billion in 2019, the second-largest acquisition in Apple history.
Apple could soon become the new owner of Intel’s giant trove of modem-related patents according to a new report on the two sides’ negotiation.
Intel decided to get out of the 5G modem game earlier this year after Apple struck a deal to use Qualcomm’s modems for the next couple of years. It appears that Intel’s loss could be a big win for Apple’s own efforts to become less dependent on third-parties for iPhone chips.
Apple’s custom-built smartphone modems likely won’t make their way into iPhones and iPads until 2025 at the earliest, according to a new report from The Information.
Intel’s strained relationship with Apple is on full display in the beefy report that reveals Apple had problems with Intel long before 5G modems became an issue. Back in early 2017, Intel struggled to supply Apple with an LTE modem destined for the 2018 iPhone lineup. Despite overhauling the modem four times, Intel nearly missed the deadline.
Qualcomm probably didn’t get the full $7 billion payment it was hoping to score from Apple as a result of the two companies’ wide-ranging legal battle.
Full details of the settlement between Apple and Qualcomm weren’t revealed when the two sides announced their truce earlier this week. However, an UBS analyst used Qualcomm’s recent guidance to estimate how much Apple agreed to pay and it looks like both sides made some small compromises.
Apple is interested in developing its own in-house ARM-based processors for MacBooks, modem chips for iPhones, and a “chip that integrates touch, fingerprint and display driver functions,” claims a new report.