After more than five years of anticipation, Apple (AAPL) is set to introduce its first in-house 5G modem across a range of its devices, including the upcoming fourth-generation iPhone SE, the iPhone 17 Air, and entry-level iPads. This development, as reported by Bloomberg’s Mark Gurman, marks a significant shift in Apple’s strategy to reduce its dependency on external chip suppliers like Qualcomm (QCOM).
The new modem, while not supporting the fastest mmWave 5G standard, is expected to offer theoretical download speeds of up to 4 Gbps. This speed, although slower than what Qualcomm’s modems currently provide in iPhones, still represents a substantial upgrade for Apple’s lineup, especially in devices aimed at the more price-sensitive segments of the market.
Apple’s approach to this transition has been cautious. The company has been secretly testing these modems on devices given to hundreds of its employees worldwide, ensuring the technology is reliable before a public rollout, according to the report. This testing phase is crucial, as the modem handles critical functions like phone calls and cellular data connectivity.
The initial launch of this modem will not include higher-end models like the iPhone 17 Pro, where the risk of any modem-related issues, as explained by Gurman, could have more significant repercussions on user experience and brand reputation. By introducing the modem first in less premium devices, Apple can manage potential risks while still advancing its technological capabilities.
The fourth-generation iPhone SE, alongside the new iPad Air and entry-level iPad, are slated for an early release in March, with the iPhone 17 Air following in September. This staggered introduction allows Apple to gather feedback and data on modem performance in real-world conditions before potentially expanding its use to more advanced products.
This move reflects Apple’s broader strategy of vertical integration, controlling more of its hardware from design to production. It not only aims to cut costs and reliance on third-party suppliers but also to tailor the technology specifically for Apple’s ecosystem, potentially offering optimized performance and integration with other Apple hardware and software.
As Apple continues to push the boundaries of what its devices can do, particularly in connectivity, the introduction of its custom 5G modem could pave the way for further innovations in how Apple devices communicate and interact with each other and the world around them.
Price Action: As of press time, Apple is trading 0.26% higher at $243.66, while Qualcomm is down 1.15% at $158.54.
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