Apple has taken a significant step towards reducing its reliance on external suppliers by developing its own custom modem chip. This groundbreaking technology will power the connectivity of iPhones, marking a major shift in the company's strategy.
Apple on Wednesday unveiled its first custom-designed modem chip, marking a significant shift in the company's reliance on external suppliers for this crucial component. This new chip, at the heart of Apple 's iPhone 16e, will enable iPhones to connect to wireless data networks, reducing Apple 's dependence on Qualcomm , a supplier that also powers many Android devices.
Apple executives confirmed to Reuters that these chips will gradually be incorporated into all their product lines in the coming years, though a specific timeline hasn't been revealed. The modem chip is part of a broader system Apple calls the C1 subsystem, which houses essential components like processors and memory. Apple's Kaiann Drance, vice president of iPhone product marketing, highlighted the iPhone 16e's exceptional battery life, attributed to the C1 system, and emphasized its inclusion of the latest AI features. Developing modem chips is a complex undertaking due to the need for compatibility with hundreds of carriers across numerous countries. Only a limited number of companies globally, including Samsung Electronics, MediaTek, and Huawei Technologies, have successfully achieved this feat. For years, Apple sourced its modems from Qualcomm, the world's largest supplier of these chips. Qualcomm's technology powers not only Android devices but also Windows laptops, directly competing with Apple's offerings. Despite a contentious legal battle with Qualcomm, Apple ultimately settled in 2019, entering into new supply agreements after alternative suppliers like Intel failed to provide a viable alternative. However, Apple is now confident in its self-developed chip, which it believes will form the foundation of a robust modem platform for years to come. Apple's C1 subsystem represents its most ambitious technological endeavor, featuring a baseband modem manufactured using advanced 4-nanometer chipmaking technology and a transceiver built with 7-nanometer technology. Johny Srouji, Apple's senior vice president of hardware technologies, emphasized the extensive testing required, involving 180 carriers in 55 countries to ensure global compatibility. Srouji stated that Apple envisions the C1 as a platform for continuous improvement, evolving across generations to differentiate Apple's products. Apple aims to leverage the tight integration of the C1 with its processor chips to enhance user experience. For instance, if an iPhone encounters congested data networks, the processor can direct the modem to prioritize time-sensitive traffic, resulting in a more responsive phone. Furthermore, the C1 chips incorporate custom GPS systems and satellite connectivity for scenarios where users are out of mobile data range. However, they currently lack support for millimeter-wave 5G networks, a key strength of Qualcomm. While Apple executives declined to disclose a timeline for incorporating millimeter-wave technology or the rate at which they will phase out Qualcomm chips, Qualcomm has indicated to investors that they anticipate their share of Apple modems dropping from 100% to as low as 20% by next year. Despite this, Qualcomm maintains a technology licensing agreement with Apple valid until at least 2027. Apple's Srouji underscored the company's aim to design chips tailored to the specific needs of their products rather than directly competing with Qualcomm or MediaTek. He expressed confidence that their approach will deliver a truly differentiated experience for Apple customers
APPLE MODEM CHIP IPHONE QUALCOMM 5G TECHNOLOGY HARDWARE
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