In a recent tweet, Apple analyst Ming-Chi Kuo provided an update on Apple’s 5G modem status. It was back in 2019 when Apple bought Intel’s modem business so it could eventually produce its own 5G chips.
The rumour that Apple is developing 5G modems began in late 2020, but Kuo says Apple won’t be ready to transition to 5G modems until 2024.
According to Kuo, Apple’s “5G modem chip development could have failed”, and Qualcomm will continue to supply 5G chips for its iPhones in 2023. Kuo’s report triggered a jump in Qualcomm stock of over 3% shortly after it was released. According to CNBC, Qualcomm had previously predicted to provide 20% of 5G modems for iPhones in 2023.
Apple is still working on its 5G modems. According to Kuo, Apple is expected to replace Qualcomm’s 5G modems with its own chips on new iPhones. Once Apple has transitioned away from Qualcomm modems, Qualcomm should have had enough time to diversify and grow so as to offset the impact it would face in revenue once Apple stops using Qualcomm modems.