Apple Announces First Custom Modem Chip, Reduces Dependence On Qualcomm
JAKARTA Apple on Wednesday 19 February announced their first custom modem chip that will connect iPhones to wireless data networks. The move reduces Apple's dependence on Qualcomm chips, which are also used by Android competitors.
This chip will be at the heart of the $ 599 iPhone 16e which was launched last Wednesday. Apple executives say that these chips will be used in more of their products in the next few years, although they don't provide exact time details.
This chip is part of a new collection of components Apple calls a C1 subsystem. This subsystem accommodates key components such as processors and memories.
IPhone 16e With The Best Battery Resilience
"The iPhone 16e, which uses the same A18 processor chip as other iPhone 16 series, has the best battery life among phones sailing 6.1 inches thanks to the C1 system," said Kaiann Drance, Apple's vice president of iPhone Product Marketing, quoted by VOI from Reuters. "The iPhone 16e will also be equipped with Apple's latest artificial intelligence (AI) feature," added Drance.
Modem chips are difficult to create because they have to be compatible with hundreds of operators in dozens of countries. Only a handful of companies in the world, including Samsung Electronics, MediaTek, and Huawei Technologies, managed to make them.
Over the years, Apple has met their modem needs from Qualcomm, the world's largest modem chip supplier. Qualcomm chips are also used on Android devices and Windows laptops that compete with Apple products.
Apple was involved in a long-standing legal dispute with Qualcomm, but eventually settled and signed a new supply agreement in 2019 after alternative suppliers such as Intel failed to provide a viable solution.
However, Apple is now confident that it has created advanced chips that will form the basis of their modem platform for the years to come.
"The C1 subsystem is the most complex technology Apple has ever built, with a modem baseband manufactured using 4-nanometer chip technology and a transceiver with 7-nanometer technology," said Johny Srouji, Apple's Senior Vice President of Hardware Technology, in an interview at one of Apple's silicon labs in Sunnyvale, California.
This chip has been tested with 180 operators in 55 countries to ensure its compatibility in all places where the iPhone is sold.
"We are building a platform for future generations," said Srouji. "C1 is the beginning, and we will continue to improve this technology every generation, so that it becomes a platform that truly distinguishes our products."
One way Apple hopes C1 can distinguish their iPhone is by integrating it strictly with their processor chips. "For example, if the iPhone faces a dense data network, the phone processor can signal to a modem about which traffic is most time sensitive and prioritizes it, making the phone feel more responsive to user needs," said Arun Mathias, Apple's Deputy President of Wireless Software.
The C1 chip also has a custom GPS system and satellite connectivity for iPhone users that is outside the reach of a mobile data network. However, this chip still lacks some features, such as the ability to connect to a 5G millimeter wave network (mmWave).
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mmWave technology is one of Qualcomm's advantages. Apple executives declined to say when their chips would have this technology or how quickly they would stop using Qualcomm chips.
Qualcomm executives have told investors they expect their modem share at Apple to drop from 100% today to as low as 20% next year. However, Qualcomm still has a technology license agreement with Apple until at least 2027.
Following Apple's announcement, Qualcomm's shares rose by about 1%, while Apple's shares remained relatively unchanged.
Srouji insists that Apple's goal is not to compete with competing chip specifications, but to design products that suit Apple's product needs.
"We are not vendors competing with Qualcomm, MediaTek, and others. We are building something that really distinguishes and will benefit our customers," he said.