Apple is gearing up to release its own series of cellular modem chips next year, replacing components from longtime partner Qualcomm. The company aims to surpass Qualcomm’s technology by 2027. Qualcomm has warned investors that Apple will eventually stop using its chips, but they have a deal to sell chips to Apple until at least 2026. Investors are watching to see if Qualcomm’s push into laptops and AI-powered data centers can offset potential revenue drops from Apple.
The new Apple component will debut in the iPhone SE, the company’s entry-level smartphone, which is due for an update next year. This will be followed by more advanced chip generations. Apple spent $1 billion to acquire Intel’s modem unit in 2019 and has been focusing on developing its own modem technology. Last year, the company signed a multi-billion-dollar deal with chipmaker Broadcom for 5G components, potentially impacting suppliers like Skyworks Solutions and Qorvo.
Apple’s move to develop its own modem chips signals a shift towards self-designed components. The company’s efforts in this area have been consolidated within its chip design unit, aligning with its strategy to control more of its supply chain. Qualcomm has not yet commented on the news, while Apple declined to provide a statement. This development is part of Apple’s ongoing efforts to reduce reliance on external suppliers and enhance its technological capabilities.
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