JOIN USApple to ditch Qualcomm's 5G modem in 2023 iPhone series
In the mid-2010s, Apple and Qualcomm were involved in a bitter battle over royalty for modems and elated technology patents in iPhones. However, in a surprise move, Apple and Qualcomm dropped all litigations against each other in 2019 and signed a major deal including a six-year license agreement with Qualcomm, effective from April 1, 2019. It also had clause for a two-year option to extend, and a multi-year chipset supply agreement.
But, within a few months, Apple announced to buy a majority stake of Intel's smartphone modem division for $1 billion, hinting that the Cupertino-based company would design and produce its own mobile modem silicon and end dependence on Qualcomm.
The Intel deal granted Apple access to more than 17,000 wireless technology patents, ranging from protocols for cellular standards to modem architecture and modem operation.
Many opined it would take more than five years for Apple to develop its own modem for iPhone, but as it happens, Apple will be able to deliver it in two years from now.
World-renowned market analyst Ming-Chi Kuo in an investor note (available with Mac Rumors) has revealed that Apple will be able to launch the iPhone with a proprietary 5G modem in 2023.
This is likely to have a huge impact on Qualcomm just like Intel is facing due to the launch of Apple's M1 silicon chipset for MacBooks.
Intel has been the long supply partner of the processor of Apple PCs, but the new M1 is said to more powerful and power-efficient, and the latter's iCore chipsets.
Once Apple starts making iPhones with its own 5G silicon, Qualcomm will lose a major client and only be receiving orders only from Android-based phone makers, which according to industry, the demand for 5G Android phones is a bit sluggish.
Also, Qualcomm has to compete with rival MediaTek and may lose the bargaining over mobile manufacturers.
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