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Apple's Bold Leap: iPhone SE to Debut In-House Modem, Challenging Qualcomm

Word on the StreetFriday, Dec 6, 2024 2:00 pm ET
1min read

Apple is gearing up to introduce one of its most ambitious projects to date—a proprietary series of cellular modem chips that will replace components from long-time collaborator and rival, Qualcomm. According to sources familiar with the matter, these in-house modem systems, the result of over five years of development, are set to make their debut next year. The inaugural showcase of this chip will be in Apple's entry-level smartphone, the iPhone SE, which is expected to receive its first update since 2022.

The project, closely guarded in secrecy, aims for Apple's modem technology to surpass that of Qualcomm by 2027. The path to this breakthrough has been long and fraught with challenges. Initially, Apple intended to bring this innovation to market as early as 2021. The journey involved billions of dollars in investments to establish testing and engineering labs worldwide. A significant milestone in this pursuit was the acquisition of Intel's modem division for approximately $1 billion and the recruitment of numerous engineers from other chip manufacturers.

Despite considerable setbacks over the years, including issues with early prototypes that were overly bulky, overheated, and power inefficient, Apple's commitment to the project remained steadfast. Internal discussions also touched upon the notion that the modem development was partly a retaliatory move against Qualcomm, following a contentious legal battle over patent royalties. However, after adjusting their development approach, reorganizing management, and hiring engineers from Qualcomm, Apple now feels assured in their progress.

While the company has encountered obstacles in their endeavor to substitute Qualcomm modems in iPhones, there is renewed confidence following strategic changes. Nevertheless, an Apple representative declined to comment on these developments.

As industry observers eagerly anticipate the arrival of the iPhone SE with Apple’s first self-developed modem, the company continues its strategic push towards technological self-sufficiency. With significant investment and innovation, Apple aims to set a new standard in mobile connectivity.

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