Apple's Bold Leap: iPhone SE 4 to Debut In-House 5G Modem, Reducing Qualcomm Reliance

The upcoming iPhone SE 4, scheduled for a spring 2025 release, marks Apple's first significant step away from Qualcomm with its self-developed 5G modem. This innovation follows Apple's 2019 acquisition of Intel's modem business, which included vital components and expertise aimed at ending its dependency on external suppliers for key technology.

Apple's journey to develop its modems was fraught with challenges, as highlighted by Johny Srouji, Apple's head of hardware technologies, who noted the complexity of modem development. Yet, this venture is crucial for Apple's strategy to reduce dependency and cost while enhancing technological self-sufficiency.

The decision to debut the in-house modem with the relatively affordable iPhone SE 4 allows Apple a low-risk environment to test the technology. Success with this launch may set the stage for the adoption of these modems in the flagship iPhone 17 series later in 2025.

Historically, Apple's reliance on Qualcomm has been financially significant, amounting to approximately $72 billion in cumulative costs by 2023. Despite extending the supply agreement with Qualcomm until 2026, Apple plans a phased transition to its own modems, gradually diminishing Qualcomm's role as an exclusive supplier since 2011.

Apple's strategic move began with the iPhone 7 in 2016, introducing Intel modems despite technical setbacks compared to Qualcomm. These issues contributed to Apple settling disputes with Qualcomm in 2019, including a substantial payout and a six-year supply agreement.

Through its substantial investment in Intel's modem assets in 2019, Apple acquired over 1.7 thousand patents, paving the way for its ongoing development efforts. Although earlier predictions anticipated self-developed modems in iPhone models by 2024, recent agreements indicate continued Qualcomm partnerships until 2026, as Apple's modem readiness is set for the iPhone SE 4 launch.