Qualcomm Expecting to Supply Just 20% of 2023 iPhone Modems As Apple Prepares to Launch Its Own Chips

[MacRumors]

Qualcomm is preparing for the launch of Apple's own modem chips, which will cut into Qualcomm's modem business starting in 2023. At today's Investor Day event, Qualcomm CFO Akash Palkhiwala said that Qualcomm expects to supply just 20 percent of Apple's modem chips in 2023.

If that's an accurate estimate, it means that 2022 will be the last year that Qualcomm enjoys a modem monopoly in iPhone devices. Apple has been working on in-house modem chips for years now, and prior rumors have indeed suggested that Apple's chips will be ready to launch in 2023.

Back in May, Apple analyst Ming-Chi Kuo said that Apple's 5G baseband chips could debut in the 2023 iPhone models, which is in line with Qualcomm's expectations. Should this occur, Apple will likely use its own chips in most regions, but rely on Qualcomm for chips in certain areas. Qualcomm said that this is just a "planning assumption for forecast purposes," but it appears the company is counting on a 2023 launch.

The assumption we use for this forecast is that for Apple 2023 launch, our share is down to 20%. This is a planning assumption for the forecast purposes. Just to be clear, there is no new data point that makes us do this forecast versus our discussions in the past. We just wanted to set a base for this forecast, and so we've used that as a planning assumption.

Apple tried to transition away from Qualcomm chips once before following a heated legal battle between the two companies. Apple wanted Intel to supply its 5G chips for the iPhone 12 models, but Intel could not meet Apple's expectations.

In 2019, Apple and Qualcomm settled their legal issues and Apple agreed to a multi-year partnership because it had no other place to get the appropriate chips it needed for its devices. Apple also began work on its own in-house modem chips with the aim of eventually getting away from Qualcomm, with Apple purchasing Intel's modem chip business to get a head start.

Article Link: Qualcomm Expecting to Supply Just 20% of 2023 iPhone Modems As Apple Prepares to Launch Its Own Chips

 

[TheYayAreaLiving 🎗️]

Wow! This will be huge! If Apple brings its own chips. Looks like 80% of the chips will be in-house by Apple.

Expecting aggressive performance results like this on an iPhone 🤩🤩

2022, is the year Apple becomes independent.

 

[Think|Different]

Keep going! You’ve come this far.

 

[joelypolly]

Maybe there is hope for 5G in the M2 SoCs

 

[TheYayAreaLiving 🎗️]

Maybe there is hope for 5G in the M2 SoCs

For MacBook Air yes. Not sure about MacBook 14 and 16"

 

[ersan191]

If ever there was a first gen product to skip it would be Apple's modems. I will happily buy Gen 2 though once they work out the kinks.

 

[TinyMito]

I thought I got 5G chip from vax already? Come on Apple.





... MacBook Pro 2022 built-in 5G. Forget Wifi, work anywhere! In the forest!

 

[makitango]

Bring it on!

 

[visualseed]

This means that MacBooks could finally get mobile connectivity as paying Qualcomm a royalty was a huge sticking point for Apple on doing it.

 

[InuNacho]

Maybe there is hope for 5G in the M2 SoCs

PC OEMs have had Sim Slots on laptops for years. It's pretty lame Apple hasn't done that but then again Apple's model of business for business is non-existent .

 

[Nozuka]

If ever there was a first gen product to skip it would be Apple's modems. I will happily buy Gen 2 though once they work out the kinks.

Their chip team has a great track record.

Can always just return it, if it sucks.

 

[jz0309]

That s some odd statements by a CFO, and it’s a planning assumption, so a prep statement for investors which will come to fruition sooner or later.
I just don’t see Apple jumping full into their own modems hastily, there’s got to be a pipe cleaner, there is just no Apple modem running in the real world yet.
Yes, Apple has experience in SOC but modes are a different class of chips…

 

[loekf]

That s some odd statements by a CFO, and it’s a planning assumption, so a prep statement for investors which will come to fruition sooner or later.
I just don’t see Apple jumping full into their own modems hastily, there’s got to be a pipe cleaner, there is just no Apple modem running in the real world yet.
Yes, Apple has experience in SOC but modes are a different class of chips…

Remember they bought a part of Intel, which used to be Infineon/Siemens, so they are not starting from scratch with cellular modems. Yes, RF is tricky, but you if you (still) have the right people.

PS: why would Qualcomm still supply 20% ? I see no technical reasons. TD-SCDMA in China is R.I.P., same for CDMA2000 in the US.

 

[makitango]

Remember they bought a part of Intel, which used to be Infineon/Siemens, so they are not starting from scratch with cellular modems. Yes, RF is tricky, but you if you (still) have the right people.

PS: why would Qualcomm still supply 20% ? I see no technical reasons. TD-SCDMA in China is R.I.P., same for CDMA2000 in the US.

Legacy iPhone models are still being produced as per the contracts that they hold. That should warrant the 20 %.

 

[xxray]

I wonder if Apple will treat this as a product differentiator or if it will simply not mention it during new iPhone + iPad presentations

 

[jz0309]

Remember they bought a part of Intel, which used to be Infineon/Siemens, so they are not starting from scratch with cellular modems. Yes, RF is tricky, but you if you (still) have the right people.

PS: why would Qualcomm still supply 20% ? I see no technical reasons. TD-SCDMA in China is R.I.P., same for CDMA2000 in the US.

yes, I know that they got intel people and patents, still, if they release say an iPad with Apple modem in 2022 and gain a years world of experience, then I can see that happening.

Why 20%?, cause apple still sell/manufactures older iPhones, eg, you can still buy iPhone 11 or 12 now ...

 

[JosephAW]

What’s next? Apple making their own micro LED screens?

 

[visualseed]

Legacy iPhone models are still being produced as per the contracts that they hold. That should warrant the 20 %.

Exactly. Apple will continue to make the iPhone 13, SE, iPad Pro, iPads, etc. All using Qualcomm modems until new updated models come out.

 

[TheYayAreaLiving 🎗️]

What’s next? Apple making their own micro LED screens?

Apple should be making its own stuff from scratch. One day that will happen.

 

[bushman4]

Qualcomm shot itself in the leg with the legal battle with Apple
Yes Qualcomm makes other stuff besides 5G modems but is it enough to make up for the $$$$ it lost with Apple? Time will tell

 

[Glideslope]

TSMC had better build that infrastructure outside of Taiwan. Xi is going to go after Taiwan.

 

[MacWorld78]

Apple should be making its own stuff from scratch. One day that will happen.

They are actually doing it step by step.

 

[InuNacho]

Apple should be making its own stuff from scratch. One day that will happen.

Highly doubtful, Apple isn't Samsung.

 

[Mr Lizard]

That s some odd statements by a CFO, and it’s a planning assumption, so a prep statement for investors which will come to fruition sooner or later.
I just don’t see Apple jumping full into their own modems hastily, there’s got to be a pipe cleaner, there is just no Apple modem running in the real world yet.
Yes, Apple has experience in SOC but modes are a different class of chips…

Why is that an odd statement? It’s widely reported that Apple has been working on modems for years. There’s no ‘hastiness’ about it.

 

[julesme]

Prediction - 2023 iPhones (with Apple modem) will be the first to be able to utilize satellite connectivity so you can connect where there is no LTE/5G signal.