Apple has unveiled its first custom-designed modem chip, a move set to reduce the company’s reliance on Qualcomm and reshape the landscape of wireless technology integration in its devices. 

For years, Apple relied on Qualcomm for modem chips, which other players also use. This shift indicates a new direction for Apple’s hardware strategy.

The chip, part of Apple’s new C1 subsystem, debuted in the $599 iPhone 16e. Executives anticipate a rollout across Apple’s product line in the coming years.

While this is a significant breakthrough for Apple in establishing itself as an in-house hardware manufacturer, the company downplayed this development extensively in its announcement, which was widely about the debut of its new iPhone 16e.

C1’s Core, Power and Efficiency

The C1 subsystem, which houses processors and memory, promises to provide iPhones with longer battery life, the company claimed.  

Apple’s Kaiann Drance, vice president of iPhone product marketing, told Reuters that the iPhone 16e has the best battery life of any of its 6.1-inch phones thanks to the C1 system. The iPhone 16e will also feature Apple’s latest AI features as well.

Max Weinbach, a tech analyst at Creative Strategies, elaborated on this in a post on X.

With iPhone 16e, Apple is doing their new in-house Apple C1 modem.

This modem does the usual 4G/5G (sub-6 GHz), as well as Satellite and GPS connectivity.

Because of the vertical control this gives Apple, it’s about 25% more energy efficient than previous iPhones pic.twitter.com/y10reU7I2h

— Max Weinbach (@MaxWinebach) February 19, 2025

Creating modem chips is complex because they must be compatible with hundreds of carriers in many countries. 

Only a few companies, including Samsung, MediaTek, and Huawei, have successfully created one. Apple’s entry into this exclusive group demonstrates its commitment to technological innovation and could really change the course of this sector.

Apple’s relationship with Qualcomm has been complex. In 2019, after a legal battle, the companies settled and signed supply agreements. This followed Intel’s failure to deliver a viable alternative. 

Understanding How it Works 

The baseband modem uses advanced 4-nanometre chipmaking technology. A transceiver is made with 7-nanometre technology. 

Johny Srouji, Apple’s senior vice president of hardware technologies, also told Reuters that the chips were tested with 180 carriers in 55 countries. This ensures they work in all places Apple ships iPhones. “C1 is the start, and we’re going to keep improving that technology each generation,” he added.

One way Apple hopes the C1 will set its iPhones apart is by integrating it with its processor chips. 

The C1 chips also feature custom GPS systems and satellite connectivity when iPhone users are away from mobile data networks. However, they will lack some features. 

They won’t connect to millimetre wave 5G networks, one of Qualcomm’s strongholds. Srouji said Apple’s goal was not to match the specifications of its chip rivals but to design products specific to Apple’s needs.

“We’re not the merchant vendor to compete with Qualcomm and MediaTek and others. I believe we’re building something truly differentiating that our customer will benefit from,” he said.

However, Apple has not responded to AIM’s questions about when its chips will have this technology or how quickly it will phase out Qualcomm’s chip.

Franci Penov, an angel investor, commended the potential of this breakthrough on X, saying that no one else has a higher density of devices, at least in the US. 

Apple C1 modem is needed for them because it opens the possibility for Apple doing mesh networking in a controlled, power efficient, and authenticated manner.

There are bunch of consumer scenarios that can benefit from this.

But more importantly, optimized mesh networking means…

— Franci Penov (@francip) February 20, 2025

Seven Years in the Making

According to a report in the Wall Street Journal (WSJ) from 2023, Apple CEO Tim Cook issued ‘marching orders’ to design and develop a modem chip. This led to the company hiring thousands of engineers, and the idea was to reduce Apple’s dependence on Qualcomm. 

WSJ also revealed that Apple planned to use the modem chip on the iPhone 15 series, but tests revealed that the chip was ‘too slow’ and was subjected to poor thermal performance. 

Moreover, engineers working on the project were affected by ‘poor communication’ among other technical challenges, and several managers were left discouraged from delays and divided opinions on the project. 

“Just because Apple builds the best silicon on the planet, it’s ridiculous to think that they could also build a modem,” former Apple wireless director Jaydeep Ranade told WSJ. 

Well, Apple may be a year or two late, but the chip is finally here. 

Qualcomm anticipates that its share of Apple modems will drop from 100% to 20% by next year. However, the technology licensing agreement between the companies will remain in place until at least 2027.

Overall, this is a big blow to Qualcomm, more specifically in the context of modems. According to reports, even Google is considering Chinese chip maker MediaTek over Qualcomm for modems in its upcoming Pixel 10 series of smartphones. 

According to reports from Android Authority, Google is planning to use MediaTek’s yet-to-be-released T900 modem. Google reportedly evaluated multiple options, including the Qualcomm Snapdragon X75 modem, which is used on the iPhone 16, before eventually choosing MediaTek. 

[With inputs from Supreeth Koundinya, tech journalist at AIM]