According to Bloomberg’s Mark Gurman, Apple continues to run into trouble as it tries to develop a 5G modem to replace Qualcomm’s 5G modem for the iPhone and other products.
Apple acquired a majority stake in Intel’s smartphone business in 2019 and began a serious effort to develop its own modem hardware, but the project has suffered multiple setbacks. Apple is “years away” from making a chip that performs as well or better than rival Qualcomm’s chips.
Apple initially hoped to launch its own modem chip by 2024, but that goal was not met, and now Mark Gurman says Apple will also miss a delayed release schedule for spring 2025. The modem chip’s release has now been pushed back to late 2025 or early 2026, with Apple still planning to introduce the technology in a lower-priced iPhone SE version.
Development of the modem chip is said to be in the early stages and “could be years behind the competition.” A version under development doesn’t support the faster millimeter wave technology, and the Intel code that Apple has been using has run into problems. The code would need to be rewritten, adding new features would cause existing ones to fail, and Apple would also have to be careful to avoid infringing on Qualcomm’s patents when developing the chip.
One Apple employee allegedly told Mark Gurman, “Why we thought we could take a failed project from Intel and somehow succeed is a mystery.” Apple’s hardware technology department is also said to be “stretched thin” on numerous projects, making it difficult to address vulnerabilities.
Apple’s displeasure with Qualcomm surfaced in 2017, when it sued Qualcomm for unfairly charging royalties for technology unrelated to its own. Apple argued that Qualcomm was overcharging for its modem chip technology.
With the iPhone 11 lineup, Apple had the option of not using Qualcomm chips and instead equipping iPhones with Intel chips, but the relationship between Intel and Apple didn’t last. after the release of the iPhone 11, Apple wanted to continue to use Intel chips on its first 5G iPhone (the iPhone 12), but Intel couldn’t produce a 5G chip that met Apple’s standards.
Apple was forced to settle its legal dispute with Qualcomm by dropping all lawsuits. The two companies signed a new contract, which was renewed in September 2023. The latest agreement with Qualcomm covers smartphones launching in 2024, 2025, and 2026, and will last until Apple delays development of its modem chips.
While development of Apple’s in-house modem chip has been delayed, the company is continuing to develop it as it rushes to end its expensive deal with Qualcomm. Apple’s first modem chip will be a standalone chip, but the company hopes to eventually develop a system-on-chip, which would also cut costs for suppliers like Broadcom and give it more control over component development.
