Apple and Qualcomm’s bitter 5G marriage will continue for at least another year

Apple and Qualcomm’s bitter 5G marriage will continue for at least another year

Apple and Qualcomm are apparently stuck with each other for at least another year, as Qualcomm revealed that it is expected to supply the vast majority of 5G modems until the end of next year, when the iPhone 15The series is expected to arrive with tons of changes, not the least of which is the long overdue transition to USB-C.

The explosive news was revealed in Qualcomm’s quarterly earnings call, which reveals that the chipmaker will be responsible for the majority of the iPhone 15’s 5G modems through the end of 2023, while only 20% supply was previously anticipated. In particular, the chipmaker “It expects to maintain its current foothold, according to comments accompanying its earnings report on Wednesday. The statement confirmed that Apple will not switch to its own internal modem design for next year’s models.”

This means that Apple will most likely still experience major hurdles (read: overheating issues) with its internal 5G modem. As an update, Cupertino was expected to have its own 5G modem ready in time for the iPhone 14 series, but that did not turn out to be true as a Qualcomm chip was used instead. Well, it seems that Apple’s modem would not be ready in time for the iPhone 15 either, which would continue the bitter marriage between the two companies for another year.
At present, it is widely anticipated that Apple it could finally be ready with its own custom 5G silicon by 2024… unless another force of nature forces Apple to continue using Qualcomm’s 5G chips in the future.

And yet, while Qualcomm will have big deals to do with Apple for years to come, the US-based chipmaker. “still assumes you will only receive minimum income contributions from Apple in tax year 2025.” Apple has done quite well with its own custom Bionic mobile chips, so it’s less and less reliant on Qualcomm. Cellular modems, especially 5G, still have to fall back on Qualcomm’s supply, much to Apple’s annoyance.

What would Apple gain from using its own 5G modem in its iPhones? Given the strong correlation between software and hardware optimization in the company’s products, we can certainly expect performance and efficiency gains by having another major component of the device completely under Apple’s control. This would ensure that all the components work better together; Not that there is currently anything inherently wrong with the current crop of iPhones using Qualcomm chips, but Apple will surely gain more by using its own custom-built chips.

In addition, Apple’s profit margins could also increase since it will no longer have to buy Qualcomm stock, and while the gain may not be that big, it all helps improve the trillion-dollar tech giant’s bottom line. Interestingly, Apple is currently valued more than Alphabet, Amazon, and Meta combined.

As an update, Apple is expected to announce the iPhone 15 series in September 2023. The lineup will reportedly consist of a iPhone 15and mephone 15 plusa iPhone 15 Proand a new iPhone 15Ultra, which will succeed the iPhone Pro Max in all but name and will likely come with a ton of new features. A common change across all upcoming iPhones will be the somewhat forced adoption of USB-C, which is required by EU law on all phones to be sold in Europe from 2024.
The iPhone 15 Pro and iPhone 15 Ultra will retain the 48MP primary camera system with hopefully more tweaks and improvements, and the iPhone 15 and iPhone 15 Plus will likely get a similar Dynamic Island redesign. iPhone 14 Pro Y iPhone 14 ProMax at the beginning of this year.

As we learn more, you will too.

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