Apple is believed to be developing its own modem and wireless chips to reduce dependence on third-party chipmakers and increase profit margins.
Key Takeaways
- Apple may switch to its own in-house 5G modems in iPhones in 2025, reducing dependence on third-party chipmakers like Qualcomm.
- The move could pose a major problem for Qualcomm, which is already expected to face revenue loss due to Huawei’s new Kirin processors.
- Apple is also reportedly working on its own wireless chip for Bluetooth and Wi-Fi connectivity, aiming to save on production costs and improve margins.
Apple has long been rumored to ditch Qualcomm in favor of its own in-house 5G modems in iPhones, and a reputable analyst has now claimed that the change could happen in 2025. The company was earlier rumored to make the switch in 2024, but multiple delays due to unspecified reasons mean that next year’s iPhones are still likely to ship with Qualcomm-made modems.
The latest report comes from TF securities analyst and well-known Apple tipster, Ming-Chi Kuo. In a post on Medium this week, Kuo stated that the change is likely to happen in 2025, but did not elaborate any further. He, however, said that he will reveal more information about this in the future. According to Kuo, Apple’s decision is likely to cause a major problem for Qualcomm, which is already expected to take a massive revenue hit next year due to Huawei’s successful development of new Kirin processors.
If the report is accurate, it could mean the iPhone 17 series will ship with Apple-made 5G modems as part of the company’s plans to further reduce dependence on third-party chipmakers like Qualcomm and Broadcom. 2025 is also likely to see the launch of the much-rumored iPhone SE 4, but it remains to be seen if it will also come with Apple’s own 5G modem, as rumored earlier. According to reports from earlier this year, one of the main reasons for the iPhone SE 4’s delay is the unavailability of the new modem in 2024.
Apart from the in-house modem, Apple is also believed to be working on its own wireless chip for Bluetooth and Wi-Fi connectivity. The company currently uses Broadcom’s wireless chip in its iPhones, Macs, and other consumer devices, and a switch to its in-house chip is expected to help it save significantly on production costs, thereby improving its margins. Earlier rumors suggested that the switch could happen in 2025, but it remains to be seen if that will indeed be the case.
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