Apple is preparing to launch a long-awaited series of cellular modem chips next year, which will replace components from longtime partner Qualcomm, Bloomberg News reported Friday.
The iPhone maker is looking to overtake Qualcomm’s technology by 2027, the report said, citing people familiar with the matter.
Qualcomm, the leading designer of modem chips that connect phones to mobile data networks, has warned investors that Apple will eventually stop using its chips.
The chip designer has a contract to continue selling chips to Apple until at least 2026, and investors are eager to see if Qualcomm’s push into laptops and AI-powered data centers can accelerate quickly enough to offset a potential decline in Apple’s revenue.
Apple’s new component is set to feature in the iPhone SE, the company’s entry-level smartphone, which is scheduled for its first update after 2022 next year, Bloomberg News reports, adding that it will be followed by more generations of more advanced chips. .
Qualcomm did not immediately respond to Reuters’ request for comment, while Apple declined to comment.
The iPhone maker has been working on its own modem technology and spent $1 billion to buy Intel’s modem unit in 2019.
In early 2019, Reuters reported that Apple had moved its modem engineering efforts to the same chip design unit that makes custom processors for its devices, signaling a doubling down on its pursuit of a self-designed modem chip.
Last year, Apple signed a multi-billion dollar deal with chipmaker Broadcom to develop 5G radio frequency components. Such a deal could hurt companies like Skyworks Solutions and Qorvo, both of which are Apple suppliers.