Apple continues to use Qualcomm’s Snapdragon X60 5G modem in its iPhone 13 family, thereby creating a monopoly for the chip manufacturer. However, that monopoly may not last long, as Qualcomm’s CFO comments that the company may only supply 20 percent of the total 5G modem shipments for the 2023 iPhone lineup as it expects Apple to mass produce its custom baseband chip.
Earlier, Industry Experts Commented That Apple’s 5G Modem May Not Be Ready Until 2025
During the Investor Day event, Qualcomm’s executive Akash Palkhiwala believes Qualcomm will not control the entire modem supply for Apple. In fact, only 20 percent of those shipments will comprise of the company’s 5G baseband chips, as the Cupertino tech behemoth intends to mass produce its own for the 2023 iPhone lineup. This means that Qualcomm only has around 12 months remaining to enjoy its monopoly before its revenue stream takes a massive hit.
Back in 2020, Apple’s Johny Srouji said that the technology giant started development work on its custom modem, so it will slowly start to depend less and less on Qualcomm’s solutions in the near future. Ming-Chi Kuo, a renowned analyst, predicted that Apple’s first 5G baseband chip will arrive in 2023, though some experts claim that the road for the company will be more complicated than just developing regular chips for iPhones, iPads, and Macs.
A previous report stated that Apple wants its first 5G modem to arrive in 2022, though some insiders believe that completion is not expected until 2025. Also, it is not like Apple will completely cut out Qualcomm out of the shipments loop when it begins mass producing its first 5G modem for 2023. The San Diego giant will likely be providing shipments in the years to come to make up for the large iPhone volumes that Apple records annually.
To bring you up to speed, Apple and Qualcomm entered into a six-year partnership that specified that the iPhone maker will use third-party 5G modems, with a different document stating that Apple may use these chips until 2024. Let us see what improvements are introduced with its own 5G modem in 2023.