Apple Initiates Development of Self-Designed Cellular Modems, Following Predicted Trends
Apple's move towards self-sufficiency takes another giant leap with the initiation of their first internal cellular modem project. According to reports from Bloomberg, Apple's senior VP of hardware technologies, Johny Srouji, announced this development during a town hall meeting. This step aims to bring yet another significant component of their smartphones, tablets, and laptops under their control, continuing their decade-long trend of vertical integration.
The push towards in-house modem development can be partly attributed to Apple's long-standing legal dispute with Qualcomm over royalty fees and licensing costs. Despite settling the matter in 2019, Apple swiftly followed up by purchasing Intel's smartphone modem division for a billion dollars.
While we don't have a definite timeline for when this homegrown tech will hit the retail market, Apple's current licensing deal with Qualcomm provides a comfortable window for development, reducing the pressure for an immediate launch.
These internal modems could have significant repercussions for Qualcomm's bottom line in the future, considering that approximately 11% of the company's revenue comes from Apple deals. However, Apple's dedication to mastering various technology spheres has proven successful over the past decade, making it a safe bet that modems are just the latest component to receive the Apple in-house treatment.
[Enrichment Data: A timeline forecasts Apple's modem development, with the first generation due in the fourth generation iPhone SE (2025), offering 4 Gbps speeds. The second generation (2026) will provide mmWave technology, increasing speeds to 6 Gbps. The third generation, the "Prometheus" modem (2027), will incorporate satellite networks and AI functions.]
Apple's goal in producing its own modems by 2025, as revealed in the enrichment data, aligns with their ambition to control more tech components. Rolling out internally produced modems in the fourth-generation iPhone SE, Apple aims to deliver speeds of 4 Gbps.
The tech industry is abuzz with anticipation for the future, as Apple's decision to produce modems could potentially disrupt the market. The upcoming '$billion' Intel modem division acquisition further strengthens this assertion.
In line with their vision for the future, Apple and its senior VP of hardware technologies, Johny Srouji, have agreed to produce modems, thereby signing off on the initiation of the first internal cellular modem project.
The tech giant's commitment to self-sufficiency in the modem sector is set to challenge traditional providers like Qualcomm, who currently derive 11% of their revenue from Apple deals. The implementation of this change in 2025, according to the enrichment data, will further boost Apple's position in the technology landscape.
