Rumors about Apple working on its own cellular modem aren’t exactly new, but they became more prevalent after the company acquired Intel’s modem business in 2019. However, according to a new report from Bloomberg, Apple has finally started developing. your first cellular modem chip.
Bloomberg heard from sources that Johny Srouji, Apple’s vice president of hardware technologies, invited some employees to a town hall meeting Thursday to discuss development plans for the company’s first cellular modem.
During today’s meeting, Srouji confirmed that Apple has begun building its own cellular modem that will be used for future devices.
This year, we began development of our first internal cellular modem that will enable another key strategic transition, ”he said. “Long-term strategic investments like these are a critical part of enabling our products and ensuring that we have a wide range of innovative technologies for our future.
Unsurprisingly, Apple will benefit from the billion-dollar acquisition of Intel’s modem division to build its team of engineers responsible for Apple’s first cellular modem. The company currently designs some proprietary wireless chips, including the H1 chip used in AirPods and the ultra-wideband U1 chip found in iPhone and Apple Watch.
With its own cellular modem, Apple will have even more control over the operation of phone calls and the Internet connection on the iPhone, Apple Watch and iPad models with cellular. If successful, Apple is expected to replace Qualcomm’s modems with its own chips. This should reduce the costs of building new devices, as Apple must pay licensing fees to Qualcomm.
The move extends Apple’s push toward greater reliance on its own parts at the expense of Qualcomm, Intel and others. Qualcomm gets about 11% of its revenue from Apple, while Intel gets about 7% of the iPhone maker’s sales, according to data compiled by Bloomberg.
Following the announcement, Qualcomm shares fell 6.3% in extended trading.
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