According to a Bloomberg report on December 11, Apple’s chief chip executive revealed that the company has begun to manufacture its own cellular modems for future devices, a move that will replace Qualcomm’s components.
People familiar with the matter said that Apple's senior vice president of hardware technology Johny Srouji (Johny Srouji) made the disclosure at a town hall meeting with Apple employees.
He said: "This year, we started the development of the first in-house cellular modem, which will enable another key strategic transition." In 2019, Apple acquired Intel’s modem business for US$1 billion to develop its own cellular modem. . The modem is one of several wireless chips designed by the company, including the W series of Apple Watch and the U1 ultra-wideband chip of the iPhone.
Srouji did not disclose when the cellular modem is ready to deliver the product, but the 2019 patent agreement between Apple and Qualcomm includes a six-year license agreement.
According to data compiled by Bloomberg, about 11% of Qualcomm's revenue comes from Apple, while about 7% of Intel's revenue comes from iPhone manufacturers.