Qualcomm will remain the exclusive supplier for 5G modem chips for Apple’s new iPhones, at least for the foreseeable future, after the Cupertino-based tech giant failed to develop its own technology in time.
Apple has been attempting to develop its own 5G modem chips for iPhones in partnership with Taiwan Semiconductor Manufacturing Company (TSMC), earlier reports said. Now, a noted Apple analyst has revealed that a survey conducted had indicated that the company had failed to develop its own 5G modem chips in time for the launch of the iPhone 15 in the second half of 2023.
Ming-Chi Kuo, a noted TF International Securities analyst, tweeted that according to his latest survey, Apple might have failed to develop iPhone 5G modem chips in time for the iPhone 15. Kuo added that Qualcomm would continue to remain the company’s sole iPhone 5G modem chip supplier with a 100% share, contrary to its own estimate of 20%.
“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,” he tweeted.
Kuo added that being the sole supplier for the iPhone 5G modem chips could potentially lead to Qualcomm’s earnings beating market estimates for the second half of 2023 and first half of 2024.
The analyst sees Apple continuing to develop its own iPhone 5G modem chips. However, by the time the tech giant manages a breakthrough in that aspect, Qualcomm’s other businesses would have grown enough to offset the loss of orders for 5G modem chips.
According to an earlier report, Apple plans to partner with TSMC to produce the company’s own iPhone 5G modem chips for future devices. The modem was said to be designed and tested at 5 nm before moving to mass production at 4 nm in 2023.