Apple won't be able to produce its own 5G modem for at least a few more years

Industry experts have weighed in on the deal between Apple and Qualcomm. Although Cupertino's efforts for its own 5G modem for iPhones are intense, we won't see the result for several years.

Gus Richard of Northland Capital Markets gave an interview to Bloomberg. Among other things, he stated:

Modem is the king category. Qualcomm is probably the only company on the planet that can supply Apple with 5G modems for iPhones next year.

The chip requires more layers of design than many processors. The device connects to the mobile network using a modem. Thanks to it, we are able to download data from the Internet or make phone calls. In order for this component to work flawlessly around the world, it is necessary to have knowledge of the given industry, which is not easy to obtain.

Although Apple started with the proposal and by producing its own modem already a year ago, but at least one more awaits him, and then a year and a half of testing.

The biggest problem is to manage all the activities that the radio chip performs. Wi-Fi, Bluetooth and mobile data must work without interruption. In addition, each of the technologies is constantly evolving and new standards are being created. However, the modem must not only cope with the latest ones, but also be backward compatible.

Mobile operators around the world use different frequencies and standards. But a single modem must accommodate them all in order to be able to function worldwide.

Apple lacks the knowledge and history to make a 5G modem

Companies that make radio chips have often gone through the history of first generation networks, 2G, 3G, 4G and now 5G. They also often struggled with less common types like CDMA. Apple does not have the years of experience that other manufacturers rely on.

In addition, Qualcomm has the most advanced test laboratories in the world, where it can test the operation in all imaginable networks. Apple is estimated to be at least 5 years behind. Moreover, Qualcomm completely rules in its category and offers top products.

Naturally, Apple had to capitulate when Intel understood that it would not be able to produce a 5G modem by next year. The agreement between Cupertino and Qualcomm provides a license to use the modems for a minimum of six years, with a possible extension to eight.

According to experts' estimates, it will probably be extended up to the higher limit. Although Apple is hiring more and more engineers, it probably won't introduce its own modems capable of performing at the same level as the competition until 2024.

Source: 9to5Mac