Apple has reportedly ‘failed’ in its mission to develop a custom 5G Modem.
For a while now, it has been reported that Apple has been working on a custom 5G modem for its iPhone and Apple Watch products to reduce the reliance on third-party companies, but now it seems as though plans have failed, with Apple relying on Qualcomm for this year’s iPhone modems.
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According to Ming-Chi Kuo, Apple had planned to switch to custom modems from 2023, but new data suggests that Qualcomm will supply 100% of the company’s modems next year, too. Kuo has suggested that Apple planned to drop their share to just 20%, but that has been delayed due to modem issues.
“My latest survey indicates that Apple’s own iPhone 5G modem chip development may have failed, so Qualcomm will remain exclusive supplier for 5G chips of 2H23 new iPhones, with a 100% supply share (vs. company’s previous estimate of 20%),” Kuo wrote on Twitter.
“Qualcomm’s revenue and EPS in 2H23-1H24 will likely beat market consensus thanks to its sole supplier position for 5G chips of 2H23 new iPhones as Apple fails to replace Qualcomm.
“I believe Apple will continue to develop its own 5G chips, but by the time Apple succeeds and can replace Qualcomm, Qualcomm’s other new businesses should have grown enough to significantly offset the negative impacts caused by the order loss of iPhone 5G chips.”
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