Among the technology giant’s New Year’s resolutions, its initiative to production and self-supply of chips for your devices without the need to resort to third parties, such as broadcom Y Qualcomm with whom he has had close relations for a long time.
Apple plans to make its own chips to get a component that includes all the functionalities of bluetooth Y Wifi and that it is capable of replacing the chips supplied by Broadcom. In the same way, its objective is to replace the chips of the Qualcomm company with a new model of cellular modem chip.
In fact, both manufacturers are currently essential for the production of the iPhone, something that has led to the increase in production costs and in the decline in profitability to the company. The rope has tightened and wants to implement this new manufacturing model from the year 2025.
We also talk about a need to save space within the structure of the iPhone, since if the three functionalities (mobile connectivity, WiFi and Bluetooth) are integrated into the same chip, it will be amortized instead of looking for these components separately. If this space is freed up, other elements such as the battery or the camera can be improved.
Broadcom is still reticent about such news, as CEO Hock Tan said at a conference in December: “We believe we have the best technology and offer value to our customers, so there’s no reason to find anything else on the market.” the one that you are not the best”. The reality is quite different and Apple is its main client, so much so that represented 20% of their income at the end of the fiscal year.
But despite this apparent calm, the business tension is here to stay, and Broadcom is aware that Apple would be working on the manufacture of radio frequency chips and other high wireless charging. The company has not stopped improving and customizing its services to increase the performance of the iPhone, but everything indicates that the decision on the WiFi and Bluetooth chips has already been made.
Qualcomm’s case is similar. Apple wants customize your cellular modemshas even assured that it will present its first cellular modem chip between the end of 2024 and the beginning of 2025, but only in some models.
However, and as shown by the data collected by a Bloomberg report, the transition process will not be easy and will last for at least three years. Apple, as in the case of Broadcom, represents 22% of Qualcomm’s annual sales.
One would have to look back in time to find an attempt by Apple to make its own cellular modem. On that occasion he detected problems related to the device overheating and the complexity of building a chip with these characteristicswhich made the American company dismiss the idea.
Qualcomm’s offensive
The company has not stood idly by, it looks to the future and has recently announced an agreement with iridium Y garmin to present the Sanpdragon Satellite. It will be a service capable of taking advantage of GPS and satellite communications to send SMS text messages in rural areas and regions without mobile phone coveragejust like iPhone 14 does with its SOS Emergency service.
Snapdragon Satellite would force devices with Snapdragon 8 Gen 2 chip they had a X70 modem improved to connect with Iridium satellites. However, the rest of the companies would have to incorporate their own system when it is available.
