Apple’s push to develop its own cellular modem is a significant strategic move that reflects the company’s broader ambition to control more of its technology stack, according to a new report from Bloomberg's Mark Gurman. The company has been working on this project for several years, following its acquisition of Intel’s smartphone modem business in 2019 for $1 billion. This acquisition brought in crucial patents and about 2,200 engineers to accelerate the development of Apple’s own modem.
The company’s decision to move away from Qualcomm, its current modem supplier, is rooted not only in the legal disputes over patents but also in a desire for greater independence and innovation. Apple has long sought to reduce its reliance on third-party suppliers, as seen with its successful transition from Intel processors to its own M1 and M2 chips in Macs. The move to a custom modem is seen as the next step in this strategy, allowing Apple to optimize performance and power efficiency specifically for its devices.
However, building a cellular modem is far more complex than designing processors or other components. Cellular modems need to handle various network standards and frequencies across different regions, requiring rigorous testing and certification. The integration process is also delicate, with challenges related to signal processing, thermal management, and power consumption that must be resolved to meet Apple’s high standards.
In the early stages, Apple’s modem may debut in niche products, such as the Apple Watch or lower-volume iPhone models, to manage the risk of widespread deployment. The phased rollout will give Apple time to refine the technology and gradually introduce it across its product lineup. Eventually, Apple aims to merge the modem with Wi-Fi, Bluetooth, and possibly even satellite communication capabilities into a single, unified chip. This integration could lead to devices that are not only more energy-efficient but also more compact, opening up new possibilities for design innovation.
Additionally, by developing its own modem, Apple could potentially offer better global connectivity solutions, with modems that are optimized for international use without the need for multiple models or configurations. This could streamline manufacturing and reduce costs over time, ultimately benefiting consumers through more consistent and reliable connectivity experiences across Apple’s ecosystem.
Despite the challenges, Apple’s long-term vision for its custom modem includes the possibility of eventually integrating it into the device’s SoC. This level of integration would represent a significant technical achievement, potentially offering Apple a substantial advantage over competitors in terms of performance, power efficiency, and design flexibility. However, this goal remains several years away, and for now, Apple’s focus is on ensuring that its first-generation modem meets the high expectations set by its existing products.
