Apple is reportedly planning to incorporate its own 5G modem chip into iPhone models from 2025 onwards. According to information disclosed by TF Securities analyst Ming-Chi Kuo, Apple’s decision is expected to put the company in serious trouble. Qualcomm is already forecast to see a significant drop in revenue next year due to Huawei’s new Kirin processor.
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Qualcomm is currently the only provider of 5G modems to Apple. The latest version of the iPhone, the 14 series, incorporates his Qualcomm X65 modem that facilitates his 5G connectivity with Apple devices. Apple has long sought to reduce its reliance on outside suppliers and to develop all components in-house.
In 2019, Apple acquired Intel’s modem business, including all patents and intellectual property rights. Since then, the company has worked to develop its own modems for his iPhone and other mobile devices.
Kuo said Qualcomm is poised to be impacted by the potential use of Samsung’s own Exynos 2400 chipset in mobile devices in 2024.
In addition to its own modems, Apple is reportedly working on its own wireless chips for Bluetooth and Wi-Fi connectivity. Now the company uses his Broadcom wireless chips in his iPhones, Macs and other consumer devices.
The move to in-house chips is expected to significantly reduce production costs and improve profit margins. Previous speculation suggested the transition could happen in 2025, but it remains to be seen if this will really happen.
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