It is no secret that Apple is working on developing its own 5G modem. However, it has been unclear how quickly the company can design its own modem and start using it inside its devices. As per Apple analyst Kuo, the 2023 iPhones will start using a 5G modem designed by the company.
Apple is currently sourcing 5G modem from Qualcomm for its products, including the iPhone 12 series. Apple was previously working closely with Intel on the development of its 5G modem.
However after the latter missed various deadlines, the company had to resolve all its disputes with Qualcomm in a multi-billion dollar settlement as it wanted to ship the iPhone 12 series with 5G. Soon after the settlement, Intel exited the modem business which was acquired by Apple to further boost its in-house modem development efforts.
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.
Until Apple’s own 5G modem is ready for use, the company is expected to secure the supply of 5G modem from Qualcomm for iPhones and iPads. A multi-year agreement has been signed between both companies, with the possibility of further extending it.
This is not the first time that reports are emerging of Apple using its own 5G modem in 2023 iPhones. Barclays analysts have also previously claimed that 2023 iPhones would feature Apple’s in-house 5G modem.[Via MacRumors]