By Stephen Nellis
Sunnyvale, California – In a significant move, Apple unveiled its groundbreaking custom-designed modem chip on Wednesday to enhance iPhone connectivity with wireless data networks. This strategic step aims to reduce Apple’s reliance on Qualcomm chips, which currently power its competitors in the Android market.
The newly revealed chip will serve as the core component of Apple’s latest iPhone model, the $599 iPhone 16e. Executives from Apple shared with Reuters that these innovative chips will gradually be integrated across Apple’s product range in the coming years, although specifics on the rollout timeline were not disclosed.
Part of a new series of components called the C1 subsystem, these chips represent a significant advancement in technology. This subsystem encompasses crucial elements like processors and memory. According to Kaiann Drance, Apple’s Vice President of iPhone product marketing, the iPhone 16e, equipped with the same A18 processor chip found in the entire iPhone 16 series, boasts exceptional battery life attributed to the C1 system. Drance also highlighted that the iPhone 16e is equipped with Apple’s latest artificial intelligence features.
Crafting modem chips is a demanding task due to the necessity for compatibility with numerous carriers in various countries. Only a select few companies globally, such as Samsung Electronics, MediaTek, and Huawei Technologies, have successfully developed such chips. Apple has traditionally sourced modems from Qualcomm, the predominant supplier of these chips globally, which are also utilized in Android devices and Windows laptops that compete directly with Apple’s products.
Following a prolonged legal dispute with Qualcomm, Apple settled and entered into new supply agreements in 2019 after alternative suppliers like Intel failed to offer a suitable substitute. Apple now expresses confidence in its advanced chip, which will serve as the foundation for an enduring modem platform.
The C1 subsystem, described by Johny Srouji, Apple’s Senior Vice President of hardware technologies, as the most intricate technology Apple has ever created, comprises a baseband modem crafted using cutting-edge 4-nanometer chipmaking technology and a transceiver manufactured with 7-nanometer technology. Rigorous testing was conducted with 180 carriers in 55 countries to guarantee global functionality for iPhones.
“We are establishing a platform for future generations,” Srouji stated. “C1 marks the beginning, and we are committed to enhancing this technology continually to distinguish our products moving forward.”
Apple aims to set its iPhones apart by closely integrating the C1 chip with its processor chips. For instance, in scenarios with congested data networks, the phone’s processor can communicate with the modem to prioritize time-sensitive traffic, enhancing user experience responsiveness.
Moreover, the C1 chips include custom GPS systems and satellite connectivity for users in areas without mobile data networks. However, certain features, such as compatibility with millimeter wave 5G networks, are not currently supported. Apple executives refrained from specifying when these capabilities would be integrated or the timeline for
During a recent investor update, it was disclosed that Apple foresees a significant decrease in their share of Apple modems, potentially plummeting from the current 100% to as low as 20% by the following year. Nevertheless, Qualcomm maintains a technology licensing agreement with Apple that extends at least until 2027. Following Apple’s announcement, Qualcomm’s shares experienced a positive uptick of approximately 1%, while Apple’s shares remained relatively stable.
Apple’s Srouji articulated that the company’s primary aim is not to directly compete with chip rivals in terms of specifications but rather to engineer products tailored to the unique requirements of Apple devices. “We’re not aspiring to enter into direct competition with the likes of Qualcomm and MediaTek,” he stated, underscoring Apple’s commitment to creating distinctive offerings that will ultimately benefit their customers.
These developments were reported by Stephen Nellis from Sunnyvale, California, with editing conducted by Sonali Paul.
