According to Bloomberg, Apple will begin producing its own 5G modem in 2020. For as long as anyone can remember, Qualcomm has been the company’s sole source of supply. However, two years later, it appears that Apple has not made any substantial headway in this regard. This means that Apple’s 5G modem chip development has failed, and the company will be dependent on Qualcomm through the second half of 2023, which means that neither the iPhone 14 or 15 lineups will have Apple’s in-house modem.
As previously reported, this fresh information originates from noted Apple analyst and leaker Ming-Chi Kuo. “My recent study indicates that Apple’s own iPhone 5G modem chip development may have failed,” he tweeted last week. “So Qualcomm will remain exclusive supplier for 5G processors for 2H23 new iPhones, with a 100 percent supply share,” he added.
Apple’s 5G modem will not be found on either the iPhone 14 or iPhone 15
While Kuo did not specify why the development of the iPhone 5G modem chip would have failed, it was revealed that progress would not be possible until at least the manufacture of the iPhone 15. If the rumors are to be believed, the iPhone 16 series will debut with this modem in 2024. As a result, Qualcomm, Apple’s sole supplier of this component, stands to benefit the most from this development.
Apple’s unexpected delay, according to Kuo, will lead to increased revenue inflows. “By virtue of the fact that Apple is unable to replace Qualcomm as the exclusive supplier of 5G processors for 2H23 new iPhones, Qualcomm’s revenue and EPS in 2H23–2H24 are likely to exceed market expectations,” he said.
There are advantages for the supplier in the long term. Kuo noted that Qualcomm’s other new businesses should have expanded enough to significantly outweigh the negative effects caused by the order loss of iPhone 5G chips by the time Apple succeeds and can replace Qualcomm.
Consumers should not be affected by this move; but, if you are a die-hard Apple fan and want to use an iPhone on which Apple uses its own 5G modem, you will likely have to wait for at least two more years. Be aware that all of the material presented here is derived from rumors, and none of it has been validated by any official sources, so you should take it with a grain of salt.