Sources: Apple spent billions of dollars developing a modem chip for the new iPhones to cut ties with Qualcomm, but the chip was slow and prone to overheating
The company set out to design a silicon chip that would allow it to cut ties with Qualcomm, a longtime supplier and bitter foe
Wall Street Journal
Context & Ripple Effects
Apple’s effort to reduce its modem dependence has been building for years: it was exploring iPhones without Qualcomm components in 2017, amid a dispute that sharpened the strategic incentive to diversify suppliers.
The reported performance problems extend the development challenge documented in earlier coverage of Apple’s modem program. They show that replacing a specialized wireless component is materially harder than deciding to bring it in-house.
First-order effects
Apple’s modem transition is constrained by a chip reportedly too slow and heat-prone for the intended iPhones, delaying the practical benefits of an internal replacement.
Qualcomm retains leverage as the viable modem supplier while Apple continues to absorb the cost and engineering burden of improving its own design.
Second-order effects
Apple must balance modem independence against iPhone performance and thermal requirements, making a phased deployment more likely than an immediate supplier break.
The setback reinforces the value of Qualcomm’s modem expertise and gives rival handset makers a reminder that custom silicon does not eliminate dependence on specialized radio technology.
Third-order effects
If such programs remain difficult to execute, vertical integration in mobile hardware will be selective: companies may control more chips while continuing to rely on outside suppliers for the most complex connectivity components.
The episode points to a broader hardware-talent moat, where the ability to recruit, integrate, and validate specialized engineering teams can matter as much as the capital committed to custom silicon.
The trend: This is one data point in the longer push by major device makers to internalize strategic chips, tempered by the difficulty of matching incumbent suppliers’ specialized performance and reliability.
Apple reportedly code-naming its 5G modem project designed to replace Qualcomm after a Greek mythology figure “Sinope” who outsmarted Zeus, and then failing to meet an internal 5-year deadline on the project, must be kind of a humbling moment.
“.. Engineering teams working on Apple's modem chip have been slowed by technical challenges, poor communication and managers split over the wisdom of trying to design the chips rather than buy them.” @WSJ $AAPL $QCOM https://www.wsj.com/...
Apple's new iPhone 15 lineup includes a better camera and a fancy button. What's missing is the silicon chip that Apple spent billions of dollars trying to make. https://www.wsj.com/...
Apple's wireless chip project to replace Qualcomm is code-named Sinope, after the nymph in Greek mythology who outsmarted Zeus. It's also running behind schedule. https://www.wsj.com/...
https://www.wsj.com/... Game recognizes game. Great article from @aatilley at @WSJ about Apple's challenges building its 5G modem. Love the internal codename for the modem. Sinope. after the nymph in Greek mythology who outsmarted Zeus.
If Apple had managed to replace Qualcomm's chips with its own, it could've tried to renegotiate patent license fees. Qualcomm has a “No License, No Chips” policy. Presumably Apple has now exercised the option to extend that license by a few more years.
The way this is written is so silly. The purpose of the effort is to invest in vertical integration, reduce battery consumption, decrease costs, and deliver a higher quality modem. Juvenile business reporting needs to stop.