iPhone 5G modem has reportedly failed which has caused Apple to hit a major roadblock

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It has been stated that Apple’s attempt to develop its own 5G modem has failed, which means that the corporation will need to rely significantly on vendors in order to produce the iPhone 15 generation in the year 2023. The news is not good for Apple, but it is fantastic for Qualcomm, which is going to win the full contract.

As predicted by Ming-Chi Kuo, a supply-chain expert who has a decent track record of predicting Apple launches, this is what we may expect to see in the next few months. Kuo tweeted yesterday that according to his latest survey, “Apple’s own iPhone 5G modem chip development may have failed” (our emphasis) and this will boost Qualcomm’s share of the supply deal for the late-2023 iPhones from an anticipated 20% to 100%.

Kuo goes on to highlight the possibly life-saving implications of this news for Qualcomm, which now has time to expand its other businesses to compensate for the loss of the iPhone contract when Apple does ultimately roll out its own modem. Readers of Macworld, on the other hand, are more concerned about the impact on Apple.

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Since the year 2020, we have had solid evidence that the company is developing an in-house 5G modem, and we had a strong suspicion that this was the case even before the company acquired Intel’s modem unit in 2019. This was always a step that made sense to take since it would bring expertise in-house and enable Apple to better control costs, better optimize hardware and software, and enhance performance and power efficiency, similar to what it accomplished with Apple silicon.

A year-long delay in the modem’s release is a major setback for Apple’s iPhone aspirations since it means that the company’s engineers will have to accept what Qualcomm has to offer and that the production costs of its devices may rise or fall. It’s possible that other product lines could be affected as well, as the Apple Watch and MacBook were both supposed to gain from the development. Adding a 5G modem to the S chip of the Apple Watch may now be pushed back by a generation as well.

According to Reuters, Kuo’s prediction comes as the Supreme Court rejected Apple’s plea to drag its dispute with Qualcomm back to court, which Kuo sees as a good sign for the future. Between 2017 and 2019, the two companies engaged in a legal struggle about licensing costs, which culminated in a settlement in Qualcomm’s favor and a six-year license agreement allowing Apple to use Qualcomm chips in iPhones until 2025.

As a result, the Apple 5G modem is still a far-off target. This September, we may look forward to the late-2022 iPhones, which are slated to be released with Qualcomm modems instead, before we reach that point. Check out our iPhone 14 superguide for the most up-to-date rumors.

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