Apple won't start producing its own 5G modems for quite some time

This is a sign that next year's iPhone 16 will definitely not include any proprietary 5G components made for Apple devices.

5G modem chips are key components that enable devices to make calls and connect to the Internet. For some time now, Apple has been trying to develop its own 5G modem chips in order to reduce dependence on (expensive) third-party manufacturers such as Qualcomm and optimize the connectivity of future iPhones. However, a new report from the Wall Street Journal (WSJ) reveals the company's failure to do so in the time they set out to do so.

Apple's previous deal with Qualcomm ended this year, and the semiconductor company predicted that Apple would use its own modems for iPhones from 2024 onwards. However, the WSJ is now reporting that Apple doesn't expect to produce usable 5G iPhone chips until the end of 2025, suggesting that we could wait until the iPhone 18 for a phone with Apple's modem.

So why such a long delay? From everything we know so far, it appears that Apple may have underestimated the complexity of the task at hand. Even the strategy of mass recruitment did not speed up the development process of the modem in the way that the company initially imagined.

Apple bought Intel's entire modem division in 2020 for $1 billion, but the Cupertino giant reported that "using the power of thousands of engineers" a strategy that has been successful in forming the computing core of its smartphones and laptops – was not enough to quickly produce better modem chips.”

Modem chips require more complex processes than processing chips because they must work with 5G, 4G, 3G and 2G wireless networks (as not every country has access to the same network standard). By comparison, the microprocessors used in iPhones run software designed specifically for Apple products, so their job is much simpler.

The WSJ notes that Apple's top strategic decision-makers, who had no experience with wireless chips, set (too) short deadlines that were unrealistic. Thus, a lot of time was wasted certifying the end of useless prototype versions of the chips.

"The delays show that Apple didn't anticipate the complexity of the task," Serge Willenegger, a former Qualcomm executive who left the company in 2018, told the WSJ. "Mobile connectivity is a completely different beast. « Despite the setback, Apple is still committed to making more and more combined its production processes under one roof.

In 2010, for example, Apple stopped using Samsung processors to power its latest iPhones. The iPhone 4 was the first to use Apple's custom-made čip and the MacBook Air (M1, 2020) was the first Apple laptop to launch without Intel hardware.

In order to reduce its dependence on display manufacturers such as Samsung and LG, Apple has also announced plans to start using its own displays in its new mobile devices from 2024 onwards.

If anyone can succeed in realizing everything they set out to do, then Apple can succeed, which has already proven in the past that it has enough resources and knowledge to transition to independent production of components. However, 5G modems seem to be their toughest nut yet.