Apple’s quest to have as much chip control as possible for a wide range of products is not going as the company anticipated. With its custom SoCs, industry watchers believe that the technology giant’s prowess in this area is unmatched, but when it comes to developing custom 5G modems and Wi-Fi chips, Apple is severely lagging behind its suppliers, Broadcom and Qualcomm. However, one report states that the company is expected to unveil its first Wi-Fi chips in 2025, and irrespective of how difficult this challenge has been, Broadcom would be the first to experience a significant financial blow.
Some industry sources have said that Apple may not be able to launch custom Wi-Fi chips by 2025 due to technical limitations
Apple is said to have invested heavily in developing custom 5G and Wi-Fi chips, according to DigiTimes, though the exact amount has not been mentioned. Unfortunately, the investment does not appear to be fruitful as the Cupertino firm has encountered ‘certain bottlenecks,’ with some rumors claiming that the company had abandoned development altogether. According to earlier information regarding the in-house 5G modem, the baseband chip was experiencing performance, overheating, and other problems, and the custom Wi-Fi chips were likely in the same boat.
Another challenge that Apple will face is succeeding against players like Qualcomm and Broadcom, who have not only accumulated significant experience in this market but also have patented technologies that could easily be challenged in court if both entities feel that Apple is getting a little too comfortable severing ties with them. There is a possibility that these custom Wi-Fi chips will not arrive in 2025, but assuming that they do, Broadcom will face a financial beatdown. However, reducing dependency on these suppliers might not be easy for the California-based giant.
In an earlier report, despite being estimated to launch its custom 5G modem for the iPhone by the end of 2025 or early 2026, Qualcomm might remain Apple’s supplier as there are other product categories such as the iPad, Apple Watch, and others that require 5G modems. Broadcom may find itself in a similar position, and even though it may face severe losses due to losing iPhone orders, there are millions of devices that Apple manufactures and ships that do not fall in the ‘mobile phone’ category. In short, this partnership will probably take several years to ride into the sunset.
Making custom Wi-Fi chips and 5G modems is just the start of Apple’s ambitious future, as it is reportedly exploring a path to integrate all of these components onto a single die to improve efficiency and conserve space inside of its devices. While this plan will take years to complete, it reveals where the company’s direction is currently focused on.
News Source: DigiTimes
