Apple is getting dangerously close to having to extend its deal to use Qualcomm 5G modems in future iPhones it seems, with the company struggling to design its own.
Apple has been working to design its own 5G modems for years, keen to ditch Qualcomm and bring another key part of the iPhone's design and manufacturing in-house. But a new report claims that the company is again falling behind plans to make the switch, with 2026 now looking likely to be the year when it could have a winner.
However, that's the year that Apple's existing, and already extended, Qualcomm deal comes to an end and it's unlikely that Apple will want to leave it that late to make a decision about extending it.
Ongoing problems
Apple has been working on its own modem since it bought Intel's modem business for a cool $1 billion back in 2019 but has so far been unable to make it work. Specifically, reports have already claimed that miniaturization problems have plagued the project.
Now, Bloomberg reports that things haven't progressed as hoped.
"Apple Inc. has fallen further behind in its multibillion-dollar effort to make a modem chip for the iPhone, stymied by the complexity of replacing an intricate Qualcomm Inc. component," the report says, adding that "Apple is now likely to miss a goal to ship the component by the spring of 2025, according to people familiar with the situation. That would postpone the release until at least the end of 2025 or early 2026."
That would leave Apple in the unenviable position of potentially having to go to Qualcomm to extend its deal once more. It's an open secret that Apple wants to cut Qualcomm out of its products which could make those negotiations interesting, to say the least. Apple will no doubt hope it doesn't have to have them.
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