Apple has been working on its own 5G modem for years, and it seems the company’s efforts are finally coming to fruition. In 2025, Apple plans to introduce its Apple self-developed 5G modem, signaling a significant step toward reducing reliance on Qualcomm. Analysts have noted that the move could have a massive impact on Qualcomm’s sales and licensing revenue.
Apple’s Plans to Cut Dependence on Qualcomm
Rumors about Apple developing its own 5G modem began circulating after the company acquired Intel’s 5G modem division in 2019. Since then, Apple has steadily worked toward an in-house solution. According to Ming-Chi Kuo, a well-known analyst with reliable supply chain insights, Apple’s 5G modem plans are progressing rapidly.
Apple is expected to ship between 35 million and 40 million devices featuring its self-developed 5G modems in 2025. This number could rise to 90 million to 110 million units by 2026, and 160 million to 180 million units by 2027. This shift in production will significantly affect Qualcomm, as it could result in a decline in 5G chip shipments and licensing revenue.
Impact on Qualcomm and the Smartphone Market
Ming-Chi Kuo has indicated that two iPhone models will feature Apple’s internal 5G modems as early as 2025. These models include the iPhone SE 4, slated for release in the first quarter of 2025, and the ultra-thin iPhone 17 Air, expected to launch in the third quarter of 2025.
Although Qualcomm’s licensing agreement with Apple extends until March 2027, the introduction of Apple’s self-developed 5G modem could harm Qualcomm’s market share. If the predictions are accurate, Apple’s decision to produce its own 5G components may dramatically reduce Qualcomm-related sales.
Apple’s Pursuit of Complete Hardware Control
Apple has always aimed for complete control over its hardware ecosystem. By developing its modem, the company would have more autonomy in its design process, potentially improving the iPhone’s cellular connection. This shift could lead to smoother integration between the iPhone and its network.
Additionally, there are rumors that Apple plans to consolidate its modem, Wi-Fi, and Bluetooth chips into a single, simplified component. This consolidation could improve battery life and overall device efficiency, making the iPhone even more powerful and energy-efficient.
Conclusion: Apple’s 5G Modem Plans and Qualcomm’s Challenges
Apple’s self-developed 5G modem is set to disrupt the smartphone connectivity market. As the company continues to ramp up production, Qualcomm could face significant losses in both chip shipments and licensing revenue. While challenges remain, Apple’s push to develop its own 5G modem is rapidly taking shape, and the effects will be felt in the industry for years to come.
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