Apple and Qualcomm have a relationship characterized by disputes, settlements, and mutual endeavors. The California-based companies share more than a home state, with both playing pivotal roles in shaping the smartphone industry, and they were recently on opposite sides of the courtroom in a royalties case that concluded in 2019. Though Apple’s efforts to develop in-house modem chips since then have garnered significant attention, recent developments suggest that its dependence on Qualcomm remains strong.
Apple has long aimed to minimize its reliance on external sources by manufacturing its own parts. After receiving an unfavorable ruling in its legal spat with Qualcomm, the company quickly pivoted topurchase Intel’s modem division in 2019, and it seemed Apple could decrease its dependence on Qualcomm’s modems for upcoming phones. There were hints that Apple was moving toward developing its own modem, potentially distancing itself from Qualcomm, known for its Snapdragon chips that power many Android devices.
Yet, Apple’s recent decision to extend its contract with Qualcomm for another three years reveals the hurdles it has encountered in modem chip creation. AsBloomberghighlighted, this extended partnership implies that Apple’s aspirations to craft its modem components might be taking longer than expected.
Qualcomm’s modems, especially those supporting the advanced 5G networks from the iPhone 12 generation onwards, have played a crucial role in ensuring seamless connectivity for Apple’s devices. The pact, which covers smartphone launches scheduled for 2024, 2025, and 2026, also reiterates Qualcomm’s unmatched expertise in this domain, thereby solidifying its position within Apple’s supply chain for the foreseeable future.
This prolonged partnership comes as a surprise for many, especially given Apple’sprevious confrontationswith Qualcomm. The two corporations had locked horns in a massive lawsuit surrounding Qualcomm’s extensive portfolio of connectivity patents. The litigation ended in 2019, leading to Intel folding its modem business, deeming it incapable of competing with Qualcomm. Apple then seized the opportunity by acquiring Intel’s modem venture for a whopping $1 billion.
Despite the renewed alliance with Qualcomm, Apple’s modem aspirations apparently remain intact. Initial anticipations hinted at Apple’s in-house modem being ready for its 2023 iPhone releases, but the latest industry rumblings seem to indicate that the company may have its modem ready towards the end of 2024 or early 2025. This timeline provides Apple with a broader window to perfect its component, ensuring it aligns with the company’s high standards.
For Apple, this journey has undoubtedly been fraught with complexities. Ensuring a global connection across varied cellular networks, delivering top-tier performance, and addressing challenges like battery life optimization and regulatory certifications remain paramount.
