Apple has already entered in the market of chipset and processor and it used some of its processors in iPhones and MacBooks this year. And, now company is planning to make its own modem chips for iPhones that would replace components from Qualcomm Inc.
A cellular modem is one of the most important parts of a smartphone, enabling phone calls and connection to the internet via cellular networks. Apple currently using Qualcomm cellular modems for its devices, including iPhone 12.
The latest iPhones with 5G use parts from Qualcomm. Before that, Apple used Intel parts for a few years and then purchased that business unit from the chipmaker.
According to Bloomberg report, Apple hardware technologies SVP Johny Srouji told employees in a meeting: “This year, we kicked off the development of our first internal cellular modem which will enable another key strategic transition. Long-term strategic investments like these are a critical part of enabling our products and making sure we have a rich pipeline of innovative technologies for our future.”
Srouji said the $1 billion acquisition of Intel Corp.’s modem business in 2019 helped Apple build a team of hardware and software engineers to develop its own cellular modem.
Having a home-made cellular modem will also mean that the iPhones and iPads featuring it will perform slightly better and offer a better battery life. That’s because it will play well with other chipsets in the device made by Apple.
Last year Apple and Qualcomm make a six year licensing pact. According to this pact, Qualcomm charges license fees to phone makers based on wireless patents it owns, regardless of whether they use its chips or not.
However, it is not clear when the cellular modem would be ready to ship in products. But it is expected that once the Apple-Qualcomm deal ends, Apple will be moving on to its own modems.