Apple to debut custom modem chips in 2024
Apple’s modem strategy includes a $1 billion acquisition of Intel’s unit and a deal with Broadcom for 5G components.
Apple plans to launch its own cellular modem chips next year, starting with the iPhone SE, replacing components from Qualcomm. This marks a significant step towards reducing reliance on the chipmaker, whose modems have powered iPhones for years. Apple aims to phase out Qualcomm’s technology entirely by 2027.
The move follows Apple’s $1 billion acquisition of Intel‘s modem unit in 2019 and its integration of modem design into its chip development team. Additionally, Apple has signed a multi-billion-dollar deal with Broadcom for 5G components.
Qualcomm has acknowledged Apple’s transition but is leveraging advancements in laptops and AI-powered data centres to offset expected revenue declines. Investors and suppliers like Skyworks Solutions and Qorvo are closely monitoring the impact of Apple’s strategy on their business.
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