Apple Unveils First Custom Modem Chip, Reducing Reliance on Qualcomm
Apple has introduced its first custom-designed modem chip, marking a shift away from Qualcomm, which has long supplied modems for iPhones and competing Android devices.
The new chip is part of Apple's C1 subsystem and will debut in the iPhone 16e, priced at USD 599. Apple executives said the modem will be integrated into more products in the coming years but did not specify a timeline.
The iPhone 16e will feature the same A18 processor as the rest of the iPhone 16 lineup. Apple Vice President of iPhone Product Marketing Kaiann Drance said the C1 system gives the iPhone 16e the best battery life of any 6.1-inch iPhone. The device will also include Apple's latest artificial intelligence features.
Modem chips are complex to develop due to the need for compatibility with hundreds of carriers worldwide. Only a few companies, including Samsung Electronics, MediaTek, and Huawei Technologies, have successfully created them.
Apple previously relied on Qualcomm for modems but engaged in a lengthy legal dispute with the company before settling in 2019. After Intel failed to provide a viable alternative, Apple signed new supply agreements with Qualcomm.
Apple Senior Vice President of Hardware Technologies Johny Srouji said the C1 subsystem is the most complex technology Apple has ever built. The baseband modem is manufactured using 4-nanometer technology, while the transceiver uses 7-nanometer technology.
The modem underwent testing with 180 carriers in 55 countries to ensure global compatibility. Srouji said Apple aims to improve the technology with each generation, making it a long-term platform for its products.
Apple Vice President for Wireless Software Arun Mathias said the C1 modem will integrate closely with Apple's processor chips. For example, if an iPhone encounters network congestion, the processor can prioritise time-sensitive data, improving responsiveness.
The C1 chips also include custom GPS systems and satellite connectivity for use outside mobile networks. However, they do not support millimeter-wave 5G networks, a technology where Qualcomm remains dominant.
Apple executives did not disclose when its chips will support millimeter-wave 5G or how quickly Qualcomm's modems will be phased out. Qualcomm has told investors it expects its share of Apple modems to drop from 100% to as low as 20% by next year. However, Qualcomm still has a technology licensing agreement with Apple until at least 2027.
Following Apple's announcement, Qualcomm shares rose about 1%, while Apple shares remained largely unchanged.
Srouji said Apple's goal is not to compete directly with Qualcomm and MediaTek but to create technology tailored to Apple products.
Apple introduced its first custom modem chip, reducing reliance on Qualcomm.
The chip debuts in the iPhone 16e, priced at USD 599, and is part of the new C1 subsystem.
The modem was tested with 180 carriers in 55 countries for global compatibility.
Source: REUTERS