The guru of Apple, Ming-Chi Kuo, published an update on the 5G modem Apple and what stage it's at. Recall that the tech giant bought Intel's modem business in 2019 to start producing its own 5G chips for iPhones.
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[Company Update] Qualcomm (QCOM.O)My latest survey indicates that Apple's own iPhone 5G modem chip development may have failed, so Qualcomm will remain exclusive supplier for 5G chips of 2H23 new iPhones, with a 100% supply share (vs. company's previous estimate of 20%).
- 郭明錤 (Ming-Chi Kuo) (@mingchikuo) June 28, 2022
Reports of Apple's 5G modem deployment began in late 2020, but Kuo's post suggests that Apple won't be ready to transition to its own 5G modem until 2024.
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I believe Apple will continue to develop its own 5G chips, but by the time Apple succeeds and can replace Qualcomm, Qualcomm's other new businesses should have grown enough to significantly offset the negative impacts caused by the order loss of iPhone 5G chips.- 郭明錤 (Ming-Chi Kuo) (@mingchikuo) June 28, 2022
Kuo noted that Apple's "5G modem chip development may have failed" and that Qualcomm will continue to be the sole 5G chip supplier for Apple's 2023 iPhones. Shortly after Kuo's report was released, Qualcomm's stock rose over 3%. According to CNBC, Qualcomm was previously expected to supply 20% of 5G modems for the 2023 iPhones.
Reports indicate that Apple's 5G modems are still under development. Kuo expects Apple's chips will eventually replace Qualcomm's 5G modems in the new iPhones. By the time Apple is ready, however, Qualcomm is expected to have grown enough to offset the revenue impact it will face when the partnership ends.
