Apple plans to launch its own 5G modem soon, as early as next year, according to prominent analyst Ming-Chi Kuo. The long-awaited move is aimed at reducing Apple’s reliance on Qualcomm, the current supplier of 5G modems for the iPhone.
Massive production
Kuo predicts that Apple’s 5G modem shipments will reach 35 million to 40 million units in 2025, then grow rapidly to 90 million to 110 million units in 2026, and up to 180 million in 2027. This ramp-up confirms Apple’s ambition to increasingly control the production of its essential componentsThis movement concerns iPhones, but also all devices potentially connected in 5G, iPad and Apple Watch included (and waiting for a 5G MacBook while we’re at it, please Tim).
This transition is expected to significantly affect Qualcomm, which will lose one of its largest orders with Apple. In addition to direct losses in terms of sales, Qualcomm could also suffer from declining licensing revenues. An inconsiderable financial windfall. Until Apple calls on them again for 6G?
Fortunately, Qualcomm is already working on 6G to be one step ahead!
Apple is behind schedule
Apple’s development of its 5G modem has hit several hurdles since the acquisition of Intel’s modem division in 2019. Last year, for example, it was reported that Apple had fallen behind schedule, despite thousands of employees working to resolve technical issues. A further delay is certainly possible, and it wouldn’t be a first.
The first devices equipped with the Apple 5G modem should therefore arrive in 2025. According to Kuo, these would be the iPhone SE4 in the first quarter and the possible ultra-thin iPhone 17 in the third quarter. This gradual launch would allow Apple to test the performance of the modem before integrating it into all its flagship models.
This man would appreciate 5G chips coming out of his factories
As you can see, developing its own modem would allow Apple to reduce its costs and improve the performance of its devices. By controlling the hardware and software, Apple could optimize the connection speed, energy efficiency, and battery life of its iPhones. It would also give the company a significant competitive advantage over its rivals.
This project is really part of a Apple’s overall strategy to gain more control over the critical components of its products. After the success of its M1 chips (and the following ones up to the M4), the creation of an internal modem will further strengthen the company’s independence from its third-party suppliers.
If Kuo’s predictions come true, this innovation could redefining the smartphone market and strengthen, once again, Apple’s position in the broader telecommunications industry.
