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Apple iPhones will Shift to Apple’s own 5G Modems as Early as 2023

According to ming-chin Kuo, iPhones will switch to Apple's own 5G modems in 2023 "at the earliest"

Apple plans to develop its own CPU and GPU production in-house, and rumors of Apple manufacturing its own 5G modems have been circulating since 2019. Apple first announced that they have started developing a modem in December 2020. The first own silicon modems are expected to arrive in 2022 iPhones, but the new investors report by Ming-Chi Kuo revises it to “2023 at the earliest.” This is consistent with an earlier analysis by a team of Barclays analysts, who also point to 2023. Both sub-6 and mmWave 5G will be supported by the modem.

We predict that the ‌iPhone‌ will adopt Apple’s own design 5G baseband chips in 2023 at the earliest. As Android sales in the high-end 5G phone market are sluggish, Qualcomm will be forced to compete for more orders in the low-end market to compensate for Apple’s order loss. When the supply constraints improve, MediaTek and Qualcomm will have less bargaining power over brands, resulting in significantly higher competitive pressure in the mid-to low- end market.

To Recall, a few months ago, Apple announced a €1 billion investment to manufacture a new R&D center in Munich, Germany. Although the company’s primary goal is to develop 5G gears and future wireless technologies, the company intends to explore other technologies. Apart from Apple’s willingness to manage the whole hardware and software stack for its devices, the modem market seems to be very controversial.

Apple Facility Munich Germany
Apple’s facility in Munich, Germany

Also Read: Apple’s Next-Generation Smartwatch Might Feature Blood Sugar Measurement

In 2018, Apple dropped its long-term modem provider, Qualcomm, and switched to inferior Intel designs due to a patent dispute. However, Intel’s modem division failed to produce a profit so the company left the market and sold its division to Apple in 2019 for $1 billion. This would be Apple’s initial stage for creating its own 5G modems. However, for the time being, the firm has returned to Qualcomm – court papers confirmed that the iPhone 12 series uses the X55 5G modem and that there is an agreement in force until 2023 to use a combination of X65 and X70 modems for the iPhone 13 and 14 generations. Apple boosted Qualcomm’s revenues to new highs last year. This means that Apple has a backup plan in place in case its own 5G modem isn’t ready for rollout in 2023. But if Apple succeeds, Qualcomm would lose millions in orders.  

To make up for lost revenue. Kuo claims Qualcomm can drive 5G designs harder into the mid-range and even entry-level segments. Another looming problem is that the company’s current chip scarcity gives it a lot of bargaining power right now, but it will wear off and Qualcomm (and even MediaTek) will feel pressure to cut costs.

SourceMacRumors
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Ronil Thakkar
Ronil is a self-proclaimed content ninja and is team Oyprice's first writer. Ronil has a fixed routine. He starts his day scouting tech news and ends it by churning out crypto. When not scribbling tech, you will find him shooting pixel heads in competitive FPS titles or engrossing anime. He listens to 'Green Day' while weaving in and out of Ahmedabad traffic.
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