Apple is vigorously developing the modem chip business

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Netease Technology News February 8 news, according to foreign media reports, people familiar with the matter said that Apple has transferred its modem chip engineering business from the supply chain department to its internal hardware technology department. This sign indicates that after years of purchasing modem chips from external suppliers, Apple is seeking to develop key components of the iPhone.

Modems are an integral part of connecting mobile phones and other mobile devices to wireless data networks. Apple used Qualcomm’s modem chip, but has gradually used Intel chips since 2016 and abandoned Qualcomm chips in the iPhone released last year.

According to sources, Johny Srouji, Apple’s senior vice president of hardware technology, took over the company’s modem chip design in January. No related changes have been reported before.

Sluj joined Apple in 2008 for chip design, and the results include A-series processors for the iPhone and iPad, as well as custom Bluetooth chips that help these devices pair with AirPods wireless headsets and other Apple accessories.

Previously Apple’s modem chip business was led by Ruben Caballero, who reported to Dan Riccio, an executive in charge of iPad, iPhone and Mac projects. Riccio’s work focuses on the integration of components in the company’s vast electronics supply chain.

Apple declined to comment. The scientific publication “Information News” previously reported that Apple is developing its own modem chip.

The Cupertino, Calif.-based company also released recruitment information for modem engineers in San Diego. Due to the existence of Qualcomm’s headquarters, San Diego is a gathering place for wireless design talents. Apple also said that it plans to build its own team in the local area.

But it can take years for Apple to make its own modem chip, and it’s impossible to know when the chip will appear on which device.

Linley Gwennap, president of chip industry research firm The Linley Group, said: “If you are an apple, everything must be good.” “There is no room for unqualified parts in the phone.”

The 5G era is coming soon

As Apple invests in modem chips, carriers and other handset manufacturers are rolling out the next generation of faster 5G wireless networking equipment. Competitors Samsung Electronics and Huawei are already producing their own modems.

Analysts say that making their own modem chips may require Apple to invest hundreds of millions of dollars each year in research and development, but it may save Apple more costs after its success.

According to Stacy Rasgon, an analyst at Bernstein Research, modem chips are a major component of Apple’s equipment costs, with each chip valued at $15 to $20, and Apple producing around 200 million iPhones a year. The associated costs may range from $3 billion to $4 billion.

Apple may also benefit from the combination of modem chips and processor chips, as Samsung, Huawei and most other mobile phone manufacturers do. This not only saves space on the phone, but also improves battery life. It is also an important factor to consider when Apple introduces augmented reality in future products

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