For 2023, Apple will not use its in-house 5G modem for any iPhone 15 model, so for the time being, the firm will continue relying on Qualcomm and its high-end chips for a few years.
A Home-Developed 5G Modem Is Not Expected Until 2025, iPhone 15 and iPhone 16 Will Likely Feature Qualcomm Chips
Qualcomm’s exclusive status was reported earlier as Apple struck a development roadblock with its own 5G modem. Bloomberg’s Mark Gurman decided to further strengthen the San Diego company’s claim by stating that it will provide a large supply next year. However, there was a time when the chipset manufacturer would have lost millions in revenue as it was reported to only deliver 20 percent of the total order to Apple in 2023.
Fortunately for Qualcomm, even though Apple started development work on its own 5G modem in 2020, it has not been able to garner the results it expected, so it will take a few more years before a viable solution enters the market. To remind you, Apple and Qualcomm entered into a six-year partnership back in 2019 that specified that the iPhone maker would use third-party 5G modems, along with a royalty paid to its supply chain partner, resulting in an incredible payday for Qualcomm.
Since Apple’s sole purpose is to generate hefty profits, it would go against the company’s best interest if it were to continue its legal skirmishes with Qualcomm. Even after acquiring Intel’s modem chip business, Apple has not been able to materialize its own 5G chip, and with Qualcomm staying ahead of the competition with cutting-edge hardware on an annual basis, it was a battle Apple could not win and had to eventually bury the hatchet.
Some insiders believe that completion of Apple’s in-house 5G modem is not expected until 2025, which means that the iPhone 16 lineup, presumably launching in 2024, will also feature chips made by Qualcomm. An earlier teardown of the iPhone 14 Pro revealed that it features the Snapdragon X65 5G modem, so in 2023, we believe that all iPhone 15 modems will feature the Snapdragon X70.
News Source: Bloomberg