Apple Unveils Custom Modem Chip, Reduces Reliance on Qualcomm

Apple has unveiled its first custom-designed modem chip, set to be integrated into the iPhone 16e and other future Apple products. The move, as reported by Reuters, will lessen the company's reliance on Qualcomm, the dominant supplier of modem chips for both iPhones and Android devices.

The newly designed chips, known as the C1 subsystem, are designed to improve battery life and integrate tightly with Apple’s processors. The iPhone 16e, which boasts the A18 processor, will have the best battery life of any of Apple's 6.1-inch phones due to the C1 system, said Apple's Vice President of iPhone Product Marketing, Kaiann Drance, to Reuters. Drance added that the 16e will also have Apple's newest artificial intelligence features.

Making modem chips is a technically difficult undertaking, with only a handful of companies having successfully engineered a chip that is compatible with hundreds of carriers in scores of countries.

The C1 subsystem is the most complex technology Apple has ever built, with a baseband modem manufactured with advanced 4-nanometer chipmaking technology and a transceiver made with 7-nanometer technology, according to Apple’s senior vice president of hardware technologies, Johny Srouji. The chips have been tested with 180 carriers in 55 countries to ensure global compatibility.

Apple has stressed that its goal is to provide technology that is specific to the needs of Apple products, not to match the specifications of chip rivals. The tightly integrated C1 chip will allow processors to prioritize data transfer based on time sensitivity and boasts custom GPS and satellite connectivity. However, it will lack millimeter wave 5G network capability.

Qualcomm has projected that its share of Apple modems will drop from 100% to as low as 20% by next year, although a technology licensing agreement remains in place until at least 2027.

Qualcomm shares rose about 1% after Apple's announcement, while Apple shares remained largely unchanged.