A tweet from Apple analyst Ming-Chi Kuo provided an update on the company's 5G modem situation. In order to eventually start manufacturing its own 5G chips for iPhones, Apple purchased Intel's modem business back in 2019.
Kuo's most recent note reveals that Apple won't be prepared to switch to Apple 5G modems until 2024, despite reports of the company developing a 5G modem starting in late 2020.
Qualcomm will continue to be Apple's only source of 5G chips for its iPhones beginning in 2023, according to Kuo, who claimed that Apple's "5G modem chip development may have failed." The price of Qualcomm stock increased by more than 3% shortly after Kuo's report was released. According to CNBC, Qualcomm had previously projected that it would supply 20% of the 5G modems for iPhones in 2023.
According to reports, Apple's 5G modems are still being developed. In the future, Kuo anticipates that Apple's own chips will take the place of Qualcomm's 5G modems in new iPhones. When Apple is prepared, Qualcomm is anticipated to have grown and diversified enough to counteract the revenue impact that would result from Apple moving away from Qualcomm modems.
