Apple plans to use its own custom-designed 5G baseband chip for the first time in the 2023 iPhone, meaning the company will no longer rely on Qualcomm to supply the 5G modem for the iPhone, according to Apple analyst Ming-Chi Kuo.
According to Kuo, Apple plans to use its own custom 5G baseband chip starting with the launch of the 2023 iPhone lineup "at the earliest." Apple currently relies on Qualcomm for its 5G iPhone modems and the company is expected to continue that dependence until it switches to its own chip. If the switch happens, Qualcomm will be forced to enter new markets to compensate for the loss of orders from Apple.
We predict that the iPhone will not adopt 5G baseband chips of Apple's own design until 2023 at the earliest. With Android sales sluggish in the high-end 5G phone market, Qualcomm will be forced to seek more orders in the low-end market to compensate for Apple's loss of orders. As supply constraints improve, MediaTek and Qualcomm will have less bargaining power with brands, leading to significantly higher competitive pressure in the mid- to low-end market.
Apple 5G modem: faster speeds, improved latency
In March, analysts at Barclays reported that Apple will include its own purpose-built 5G modem starting with the 2023 iPhone. Apple's development of its own modem, which reportedly began in early 2020, has been widely reported. Apple-designed modems are expected to offer faster speeds, improved latency, and other benefits compared to Qualcomm or Intel modems that powered previous iPhone generations. In 2019, Apple acquired the majority of Intel's smartphone modem business, a move that spurred the development of Apple's own modem. Apple said at the time that the purchase "will help accelerate our development of future products and will enable Apple to further differentiate itself in the future." (Photo by IndianSummer / Bigstockphoto)
