It will reduce Apple’s dependence on suppliers such as Qualcomm as the former uses the latter’s manufactured components for 5G connectivity
Apple is now said to have working on its own in-house cellular for all its upcoming devices, which is confirmed by the company’s top chip executive, Johny Srouji. This move all provide the Cupertino tech giant complete independence from dependence on other companies.
It will reduce Apple’s dependence on suppliers such as Qualcomm as the former uses the latter’s manufactured components for 5G connectivity. It used Qualcomm’s components on its latest iPhone 12 models that have 5G.
Before its dependence on Qualcomm, Apple utilized Intel’s components for the modem and then purchased the entire unit from Intel at price of $1 million acquisition back in 2019. Now, it helped the company to create its own team of software and hardware engineers to design and manufacture its cellular modem.
As of now, the company hasn’t confirmed anything official when the new modem would be launched, but as per some reports, Qualcomm and Apple have a six-year licensing deal as per a patent agreement of 2019. The SoC manufacturer charges license fee to all OEMs no matter they are using Qualcomm’s technology/equipment or not.
Johny Srouji said exclusively to Bloomberg, “This year, we kicked off the development of our first internal cellular modem which will enable another key strategic transition. Long-term strategic investments like these are a critical part of enabling our products and making sure we have a rich pipeline of innovative technologies for our future”.