After a high-tension battle over royalty payment dues, the tech giants Apple and Qualcomm settled over a deal in 2019.
This effectively wiped Intel out of the 5G smartphone modem business. And now, it looks like Qualcomm might also lose a big chunk of revenue in the future as Apple starts developing its own cellular modem.
As per reports, Johny Srouji, Senior VP of Apple Hardware Technologies made the announcement in a meeting with company’s employees. Precisely, he says that the company kicks off the first internal cellular modem development. Accordingly, this decision will have a key impact someday in the future if not today.
Mentioning this as another strategic transition, he says the $1 billion acquisition of Intel‘s modem business helped them build a team of engineers. If we call, apart from hiring Intel’s 5G mobile technology head, the company actively hired engineers from Qualcomm as well. Adding to the tally of wireless chips, he also said that this modem will join Apple’s W-series (Apple Watch) and iPhone‘s U1 ultrawide-band chips.
In case if you didn’t what is cellular modem? , a cellular modem is essential to a Smartphone. It makes calls, and internet connection possible via wireless cellular networks. And now, Qualcomm might be in danger of losing revenue (11% as of now) from Apple. This is because Apple’s self-reliance has pushed it to invest in processor, camera chips, and now cellular modems.