Apple to use its own custom-designed 5G modem starting with 2023 iPhones
TF International Securities analyst Ming-Chi Kuo has reported that Apple is looking to begin using its own custom-designed 5G baseband chips starting in 2023.
In an investors note on Monday, seen by MacRumors, Kuo notes that 2023 will be the earliest we will likely see Apple move away from Qualcomm modems in the iPhone, noting that when Apple moves to producing its own baseband chips, the semiconductor company will be forced to compete for more orders in the low-end market to compensate for Apple’s order loss.
The report follows after Apple acquired Intel’s smartphone modem business in 2019, with around 2,200 Intel employees joining the team at Apple along with Intel’s intellectual property, 4G and 5G patent portfolio, equipment, and leases, ahead of the first 5G iPhone in 2020.
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.
Bloomberg also reported in December that Apple was working on its own in-house cellular modem to replace Qualcomm chips.
Via: MacRumors