Long-awaited this series of cellular modem chips, to be unveiled next year, will be used to ultimately overtake Qualcomm's technology by 2027 and in a blow to Qualcomm it’s likely that Apple will stop using its chips entirely.
Qualcomm is a designer of modem chips that connect phones to mobile data networks and has a deal with Apple that is set to last until at least 2026.
The decision by Apple is likely to increase pressure on Qualcomm to accelerate the move into laptops and AI-powered data centres in order to counter the loss in revenue from Apple.
Apple's new component is set to feature in the iPhone SE, the company's entry-level smartphone, which is scheduled to be updated in 2025. Further generations of increasingly advanced chips are expected to follow.
The tech giant has been working on its own modem technology for the past five years and spent $1 billion to buy Intel's modem unit back in 2019. It’s increasingly focused its engineering efforts on developing custom processors for its devices, including this new modem chip. Last year, it signed a multi-billion deal with Broadcom to develop 5G radio frequency components.
This news highlights significant changes are ahead for many of Apple’s key suppliers with several lucrative contracts likely to come to an end.
