Apple Inc. is on the verge of launching its own cellular modem chips, a move that could significantly impact its long-time supplier and competitor, Qualcomm Inc. This ambitious project, more than five years in development, aims to replace Qualcomm components in Apple devices.
Apple’s initial in-house modem is expected to debut in the spring with the updated iPhone SE, the company’s entry-level smartphone. Modems are crucial for mobile devices, enabling connectivity to cellular networks for calls and internet access. This first iteration of Apple’s modem technology will be followed by progressively advanced versions, with the goal of surpassing Qualcomm’s technology by 2027.
The journey to develop a proprietary modem has been challenging for Apple. Initial plans targeted a 2021 launch, fueled by billions of dollars invested in global testing and engineering labs, a $1 billion acquisition of Intel Corp.’s modem group, and significant recruitment efforts from other silicon companies. However, early prototypes faced issues with size, heat generation, and power efficiency. Internal concerns also arose regarding the project’s motivation, questioning whether it was primarily driven by a desire to retaliate against Qualcomm following a licensing dispute.
Despite these setbacks, Apple has persevered. Through adjustments to development processes, management restructuring, and strategic hiring of Qualcomm engineers, the company is now confident in its modem strategy. This achievement would represent a significant victory for Apple’s hardware technologies team, led by Senior Vice President Johny Srouji.
Qualcomm, while anticipating this shift, still relies on Apple for over 20% of its revenue. Following the news of Apple’s plans, Qualcomm’s stock experienced a slight dip. Qorvo Inc., another component supplier potentially affected by Apple’s move, also saw a temporary decline in its share price.
The upcoming iPhone SE will boast new features, including Apple Intelligence and an edge-to-edge display. However, the most significant advancement, the in-house modem codenamed Sinope, will remain hidden from consumers. Initially, the new modem won’t be integrated into Apple’s higher-end iPhones. It’s slated for inclusion in a new mid-tier iPhone (codenamed D23) with a thinner design next year, and in lower-end iPads starting in 2025.
Apple has been conducting extensive testing of the Sinope modem with employees and carrier partners globally. The decision to launch with lower-end products reflects the inherent risk associated with modem development. A malfunctioning modem can result in dropped calls and missed notifications, consequences less tolerable for users of premium iPhones.
Furthermore, the Sinope modem’s capabilities are not as advanced as Qualcomm’s latest offerings. Notably, it lacks support for mmWave, a 5G technology offering theoretical download speeds up to 10 gigabits per second. Instead, it utilizes the more common Sub-6 standard, consistent with the current iPhone SE. The Sinope modem will support four-carrier aggregation, compared to Qualcomm’s six or more. Lab tests indicate download speeds of around 4 gigabits per second for Apple’s modem, lower than Qualcomm’s non-mmWave modems. However, real-world speeds often fall short of theoretical maximums, potentially minimizing noticeable differences for users.
Despite these limitations, Apple believes its modem offers advantages, including tighter integration with its processors for improved power efficiency and cellular service scanning, enhanced support for satellite connectivity, and better performance relative to Specific Absorption Rate (SAR) limits. The Apple modem will also support dual SIM dual standby (DSDS), enabling data connections on two phone numbers simultaneously.
Taiwan Semiconductor Manufacturing Co. (TSMC), Apple’s primary chip manufacturer, will produce the new modem. To facilitate development, Apple expanded its presence in San Diego and Southern California, recruiting talent from Qualcomm. Executives believe that hiring from Qualcomm was crucial in overcoming earlier challenges. Development also took place in Cupertino and Munich.
The modem will work in conjunction with a new Apple radio frequency front-end system (RFFE) called Carpo, further impacting Qualcomm’s business and potentially affecting Qorvo. Apple’s existing relationships with RF filter suppliers Skyworks Solutions Inc. and Broadcom Inc. will continue, reinforced by a recently extended supply agreement with Broadcom.
Looking ahead, Apple plans to narrow the gap with Qualcomm with its second-generation modem, Ganymede, in 2026. Expected to feature in the iPhone 18 and high-end iPads, Ganymede will support mmWave, achieve download speeds of 6 gigabits per second, and offer enhanced carrier aggregation capabilities.
By 2027, Apple aims to surpass Qualcomm with its third-generation modem, Prometheus, emphasizing performance, artificial intelligence, and support for next-generation satellite networks. In the long term, Apple is exploring merging its modem and main processor into a single chip. This ambitious roadmap underscores Apple’s commitment to developing its own core technologies and potentially reshaping the landscape of the mobile chip industry.
