Apple not only entered 5G with the iPhone, but also entered network technology.
New reports suggest that after years of research and development, Apple will be integrating its own home-grown cellular modems into some of its products for the first time, possibly as soon as next year.
Why build a modem in the first place?
But Mark Gurman, whose frequent inside scoops have put him at the apex of arguably the most sophisticated industrial watchdog operation in corporate history, isn’t quite sure how the job benefits him.
He argues that while the M4 chip and other processors developed by Apple’s silicon development team have brought about big changes for the company, the new modems won’t provide any big benefits out of the gate.
He said Apple expects the new modems to become so sophisticated that they will transform the iPhone, and that the immediate benefits to customers will be hard to put into words.
Is it all about cost?
Cost is another, of course: Apple has historically balked at the cost of Qualcomm’s modems, but Qualcomm believes it should still pay the company royalties even if Apple makes its own modems.
Plans to put Apple modems in Apple devices also don’t seem likely to happen anytime soon: Apple recently extended its contract with Qualcomm through 2027, which could reflect the need to repair or upgrade existing devices.
But the cost could be a big advantage.
The actual price is a trade secret, but one teardown report said the Qualcomm modems used at the time cost $90 each, making them the most expensive component in the iPhone 12. I don’t think the price has changed much since then.
The way I see it, if Apple can cut its costs it could either bank the surplus or maintain current pricing levels despite increased pressure on smaller vendors to raise prices, allowing it to penetrate deeper into the mid-range smartphone market.
What about interoperability?
Beyond the cost, Apple gaining control over modems also means that the hardware and software can interoperate more effectively, which could lead to, for example, better bandwidth awareness, fewer dropped calls, and all the little ways in which modems already affect customer experience.
Is it about catching up to standards?
Of course, going forward, when it comes to future mobile standards (including 6G and beyond), ownership of modem development could provide Apple with the opportunity to set some of its own SERP patents (don’t forget that when it acquired Intel’s modem division, it also picked up over 17,000 wireless technology patents in the deal).
Maybe they’re going to charge Qualcomm the same amount in royalties for their own patents. Not only that, but the big investment in satellite technology will pay off big time, and LEO satellite support is (I think) part of what’s included in 6G.
Or is it simply a design goal?
Gurman sees the potential for improved battery life and reliability in combining all modem functionality with Wi-Fi and Bluetooth on a new wireless chip. He speculates that this combination of components could evolve further, eventually hosting all of these functions on a single chip, further improving battery life and allowing Apple’s designers to create smaller, lighter products at a lower cost.
What about the environment?
That’s true, but I also think Apple wants to continue reducing its energy requirements, as this is a key goal of the company as it moves to closed-loop manufacturing. If Apple can reduce the amount of energy a device uses over its lifetime by just 1%, it would be a big step towards the company’s environmental goals.
There are several risks
Gurman’s report also notes the risks if Apple gets it wrong: When the company used Infineon mobile chips, there were complaints about poor data connections and dropped calls, he notes, and those complaints continued when the chips came from Intel (which bought Infineon in 2010 and sold it to Apple in 2019), he adds.
He thinks we might see similar complaints this time around, which isn’t a far-fetched guess considering modem development has apparently stalled, with the company originally planning to ship the first modems around 2022. Still, it’s unlikely Apple will introduce these modems if it decides they’re not ready for connectivity.
Why is Apple developing its own 5G modem for the iPhone?
In summary, the main reasons why Apple is working on this project are the opportunity to reduce costs, the opportunity to differentiate its products and introduce new and interesting designs, the opportunity to reduce CO2 emissions during use, the goal of putting all the systems on a chip with miniaturization, and the long-term goal of being ahead of the curve in the next mobile technology transition.
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