Qualcomm had planned to only provide about 20% of the 5G modem parts for the new iPhones in 2023, but now expects to retain its current foothold, according to comments that accompanied its earnings report Wednesday. The statement confirmed that Apple won’t be moving to its own in-house modem design for next year’s models.
Read more about Qualcomm’s downbeat forecast
Since settling a lawsuit with Qualcomm in 2019 and agreeing to use that company’s technology inside iPhones for the foreseeable future, Apple went to work on building its own cellular modem, Bloomberg News has reported. Apple’s chip development chief told staff in 2020 that development of the part was underway.
But earlier this year, Bloomberg News reported that Apple’s efforts have been stymied by prototype versions of the modems overheating and that the company wouldn’t begin a switch until 2024 at the earliest.
Apple didn’t immediately respond to a request for comment.
The reprieve provided little comfort to Qualcomm investors Wednesday. The company is grappling with a broader slump in smartphone demand and delivered a far weaker forecast than expected. The shares slid as much as 8.4% in late trading.
— With assistance by Ian King
