For years, Apple has been working to develop its own 5G modem to reduce its depend
ence on Qualcomm.
Apple’s goal of developing a 5G modem would also save the iPhone maker billion
s of dollars it would have to pay its partner. The first foray into Apple’s homegrown 5G modem is expected to come next year when the com
pany introduces the iPhone SE 4, the first product to feature Apple’s custom 5G modem. Although Apple’s licensing agreement with Qualcomm runs until March 2027, Apple has already begu
building its own supply chain for 5G modems.
The iPhone SE 4 is said to feature Apple's own 5G modem.
The iPhone SE 4 is said to feature Apple's own 5G modem.
However, one analyst warned that Qualcomm still holds a large amount of con
trol and could make things difficult for Apple by cutting off modem supplies. If that happens, Apple would face a major challenge in finding an alternative supplier.
Apple’s stock could fall sharply if Qualcomm decides to stop supplying modems immediately, according to tech analyst Patrick Moorhead.
However, the chipmaker may not want to damage its relationship with a major customer like Apple, and may instead look to profit from supplying 5G modems for the iPhone.
An analysis of the cost of producing the iPhone 16 Pro Max shows that if Apple hits its target of shipping 90 million units in 2024, Qu
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alcomm could earn about $2.52 billion from 5G modem sales alone, at an estimated $28 p
er modem. This figure does not include revenue from previous iPhone and iPad product lines.
However, adopting Apple's own 5G modem is also facing some difficulties.
However, adopting Apple's own 5G modem is also facing some difficulties.
In the case of Apple adopting its own in-house 5G modem with the iPhone SE 4, Qualcomm may not have to worry too m
uch because the market share of this iPhone model is not large. However, things will become more urgent in the context of Apple planning to
provide mmWave modem technology in the iPhone 18 and 18 Pro Max. In addition, Apple is also looking to bring cellular connectivity to Macs, with this technology possibly appearing in the future Apple Vision Pro model.
