Apple is Three Years Behind Qualcomm in 5G Modem Development

Apple initially had ambitious plans to develop its in-house 5G modem for the iPhone 15, a project that involved substantial financial investments. However, the company is still relying on Qualcomm for modems, raising questions about the reasons behind this decision. The latest report claimed that Apple is approximately three years behind Qualcomm in 5G modem development.

The challenges of modem development are complex, with historical examples illustrating the difficulty. Back in 2010, Intel acquired Infineon for $1.4 billion, primarily because its baseband chips were used in iPhones for cellular functions.

In 2019, Intel sold its modem patents to Apple for $1 billion, effectively exiting the modem business. Apple’s intent was clear—to create its own modems, both for cost savings and to reduce dependency on Qualcomm.

Apple is Three Years Behind Qualcomm in 5G Modem Development

Qualcomm had initially anticipated that Apple would have developed its modem by 2024. However, in September 2023, Qualcomm surprised by announcing a deal to provide Apple with modems until 2026.

The Wall Street Journal reported that despite Apple’s significant investment in the project, multiple delays have hindered its progress. Challenges include technical difficulties, as well as unforeseen management issues that have plagued the endeavour.

The project, reportedly codenamed Sinope, began in 2018, a period when Apple and Qualcomm were embroiled in legal disputes that were eventually settled in 2019.

During that time, Apple’s executives were divided on whether to partner with Intel or develop their chip. Ruben Caballero, then head of wireless at Apple, favoured Intel, while Johny Srouji, senior vice president of hardware technologies, advocated for an in-house modem.

Caballero departed in 2019, and many of his team members were placed under Srouji’s leadership. Some were transferred to a separate hardware engineering group focused on related tasks like antenna design.

This division within the engineering team created problems. Certain senior managers lack a background in wireless technology. Unrealistic deadlines were set, primarily by Apple executives lacking wireless expertise.

The situation continued until late 2022 when Apple initiated prototype testing. Allegedly, Apple’s 5G modem chips performed poorly, potentially leading to slower wireless speeds compared to Android devices.

Insiders familiar with the tests estimated that Apple is approximately three years behind Qualcomm in modem development.

It’s worth noting that the prototypes tested might have been for internal-use-only iPhone SE 4 models, created for testing purposes. Initially, it was anticipated that a shipping iPhone SE 4 would feature Apple’s modem in 2024, but this timeline now appears unrealistic.