Apple to Launch In-House Modem, Pressuring Qualcomm

In a significant technological pivot, Apple is preparing to launch its in-house modem, set to transition away from Qualcomm, its long-time supplier. Sources indicate that this highly anticipated modem will first appear in the upcoming iPhone SE, marking a strategic move to revitalize this underperforming model. This shift aims to enhance iPhone capabilities, especially concerning connectivity with 5G and 4G networks, directly impacting user experience. The modem is also expected to make its debut in the iPhone 17, slated for late 2025. The potential benefits could include reduced device size and possibly improved battery life, although specifics on any significant advancements remain unclear. Apple’s focus on design and functionality could lead to a surge in sales, as consumers typically upgrade for improved aesthetics, battery, and camera performance. Conversely, Qualcomm's business model may face challenges, as 20% of its revenue is derived from its partnership with Apple. Qualcomm is shifting its focus, presenting itself as a multi-industry technology provider that extends beyond handsets. Despite this operational shift, the company faces inherent risks as it attempts to navigate its evolving relationship with Apple and explore emerging markets such as PCs and automotive technology. This scenario reflects a classic business rivalry where innovation and adaptation are crucial for survival in an industry marked by rapid technological advancements.