Apple has introduced its first custom-designed modem chip, a major step towards reducing its dependence on Qualcomm, which has long supplied modems for iPhones and rival Android devices. The new chip is integrated into Apple’s latest iPhone 16e, priced at $599, and will be rolled out across future Apple products.
The modem chip is part of Apple’s new C1 subsystem, a set of components that includes processors and memory. Apple executives have stated that this technology will serve as the foundation for future modem advancements but have not disclosed the full rollout timeline.
Challenges in Modem Development
Modem chips are notoriously difficult to develop due to the need for compatibility with hundreds of carriers across multiple countries. To date, only a handful of companies—such as Samsung, MediaTek, and Huawei—have successfully built competitive modem technology.
Apple’s previous efforts to create its own modem were met with challenges. The company relied on Qualcomm for years, even after a prolonged legal dispute, and ultimately signed a supply agreement with the chipmaker in 2019 when alternative suppliers, such as Intel, failed to deliver a viable solution.
However, Apple is now confident in its ability to build a next-generation modem platform, ensuring long-term independence from external chip suppliers.
The Advanced C1 Subsystem
The C1 subsystem is the most complex technology Apple has ever developed, according to Johny Srouji, Apple’s Senior Vice President of Hardware Technologies. The baseband modem is built using 4-nanometer chipmaking technology, while the transceiver uses 7-nanometer technology. Apple rigorously tested the chip with 180 carriers in 55 countries to ensure global compatibility.
Apple aims to differentiate itself from rivals by tightly integrating the modem with its processor chips. For example, when data networks become congested, the iPhone’s processor will be able to prioritize critical data traffic, enhancing responsiveness and performance for users.
Satellite and GPS Integration, But No mmWave Support Yet
The C1 chip includes custom GPS systems and satellite connectivity, ensuring seamless communication even when users are out of mobile network range. However, the chip currently lacks millimeter-wave (mmWave) 5G connectivity, an area where Qualcomm continues to dominate.
While Apple has not revealed when it plans to incorporate mmWave technology, Qualcomm has informed investors that it expects its share of Apple’s modem business to decline from 100% to as low as 20% by 2025. However, Qualcomm will continue to earn revenue from technology licensing agreements with Apple until at least 2027.
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Apple’s Long-Term Vision
Rather than directly competing with Qualcomm and MediaTek in the broader chip market, Apple is focused on building modem technology tailored specifically for its ecosystem. Srouji emphasized that Apple’s strategy is not about matching competitors’ specifications but about developing technology that enhances the Apple user experience.
“We’re not a merchant vendor competing with Qualcomm or MediaTek. We are building something truly differentiating that our customers will benefit from,” he said.
With this new modem technology, Apple is laying the groundwork for a future of in-house wireless connectivity, ensuring greater control over its devices and reducing reliance on third-party chipmakers.
