Apple analyst Ming-Chi Kuo revealed the tech company’s investor note — this information alerts the closure of Apple’s contract with third-party cellular modem supplier, Qualcomm. Apple has reportedly designed its 5G baseband chips — by 2023, these modems should be deployed for commercial use, featuring in its futuristic smartphone and other gadgets by Apple.
According to Ming-Chi’s report, it means that the iPhone maker will no longer have to rely on other cellular chip suppliers such as Intel and Qualcomm in the next two years, MacRumors writes.
The iPhone maker is currently in a contract with Qualcomm — the chip supplier will continue to deliver these 5G cellular modems until the iPhone maker rolls out its custom cellular modem in its customer products.
By 2023, Qualcomm is expected to encounter multiple losses because chip orders have ended by its major customer. Since Apple it major customer has found a replacement for its cellular modem to feature in its next iPhones “We predict that the iPhone will adopt Apple’s designed 5G baseband chips in 2023 at the earliest.”
“As Android sales in the high-end 5G phone market are sluggish, Qualcomm will be forced to compete for more orders in the low-end market to compensate for Apple’s order loss,” Ming-Chi added
Nonetheless, there has been a global chip shortage, and by the time chip supply is at its maximum the likes of MediaTek and Qualcomm will “have less bargaining power over brands, resulting in significantly higher competitive pressure in the mid to low- end market.”
Apple has reportedly developed several customs owned semiconductor to power its products — since chip shortage was expected to rise by 2020, Apple already ventured into creating it own custom chips. Apple revealed their 5G cellular modem in march — this chip will debut in 2023, Barclays analyst reports.
Just like Apple’s M1 semiconductor, the forthcoming 5G modem is expected to improve the capability of its gadgets including its latency, browsing speed, a friendly cellular chip with its battery capacity among other interesting improvements.
Meanwhile, critics suggest Apple’s cellular modem might not be responsive as other modems supplied by Intel and Qualcomm that have featured in the previous generation iPhones. While other tech specialists expect the best experience, they suggest — “This isn’t intel. Its Apple combined with Intel’s experience.”
Prior to now, the Cupertino based company has ordered more of these chips, especially from Intel’s smartphone modem business division and Qualcomm’s modem business respectively. These purchases will “bolster and expedite our development on future products and allow Apple to further differentiate moving forward.”
They reportedly channelled their experience as a resourceful tool in developing the next generation modem chip — a custom-made cellular chip by Apple.
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