Apple’s iPhone 15 is selling well, but it lacks Apple’s 5G chip, leading to criticism despite years of investment. However, this doesn’t mean that Apple will give up. Foreign telecom experts believe that Apple will not abandon its self-developed chips, as “they harbor deep resentment towards Qualcomm.”
Apple successfully developed its M1 chip, breaking ties with Intel after years of collaboration. There have also been reports of Apple’s intent to develop its own Micro LED technology, causing anxiety among suppliers. Apple has invested billions and spent years on self-developing modem chips but has yet to succeed.
Resentful of being “squeezed” by Qualcomm, Apple invests in modem chip development for the iPhone.
In 2018, Apple CEO Tim Cook ordered the development of an in-house modem chip to replace Qualcomm’s long-dominant chips. To achieve this, Apple hired thousands of engineers. The iPhone 15’s new chip was too slow, overheated, and too large, dashing hopes it could replace Qualcomm’s. It’s estimated that Qualcomm received over $7.2 billion from Apple last year.
For many years, Qualcomm has dissatisfied Apple. Using Qualcomm chips means Apple pays patent fees and a commission on every iPhone sold. This “double-dipping” business model has been a source of contention and even led to legal battles between Apple and Qualcomm.
Modem chips for the iPhone are more difficult to develop than CPUs!
According to Apple’s original plan, the company was supposed to feature its in-house modem chip in the iPhone 15. However, testing revealed that Apple’s chip was too slow, prone to overheating, and too large to be commercially viable. Recently, Apple extended its contract with Qualcomm until 2026, leading the newly released iPhone 15 to still use Qualcomm chips.
Jaydeep Ranade, former Apple wireless director, said it’s absurd to think Apple can make modems just because they build great chips. Technical challenges, poor communication, and internal disagreements have caused the chip development project to progress slowly.
Apple found designing microprocessors easier than creating modem chips for wireless data transmission and reception. The latter must meet strict connectivity standards to serve telecom operators around the world. This requires not only 5G connectivity but also compatibility with 2G, 3G, and 4G networks still in use.
Engineers said Apple’s schedule was unrealistic due to their inexperience with the chips. Developing modem chips requires collaboration with telecom operators around the world and demands a significant amount of time.
The final product was three years behind Qualcomm’s most advanced modem chips. Forcing its use would have slowed down the iPhone, resulting in slower network speeds compared to competitors. Realizing the difficulty of developing modem chips, Apple executives initially extended the deadline to 2024. However, upon discovering that this timeline was still unrealistic, they ultimately compromised by negotiating a contract extension with Qualcomm.
Although the R&D project is significantly behind schedule, Apple remains determined to continue the fight.
Former Apple engineers say Apple has caused its own development delays due to technical issues, poor communication, and internal disagreements. These teams operate independently across various locations in the U.S. and overseas, lacking a global overseer. Some managers would disclose bad news about delays or setbacks, leading to unrealistic goals and missed deadlines.
Although the previously set target timeline has temporarily failed, Apple has not abandoned the development of modem chips. Insiders claim that there are still sufficient resources to continue the R&D. Edward Snyder said Apple won’t give up and deeply resents Qualcomm.
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