Apple starts focus on its cellular modem

Apple has started building its own cellular modem for future devices, a maneuver that would replace pieces from Qualcomm, Apple’s top chip executive told personnel on Thursday.

Johny Srouji, Apple’s senior vice president of hardware technologies, made the disclosure in a town hall meeting with employees, according to persons acquainted with the comments. Qualcomm shares dropped 5 per cent in prolonged trading on Thursday.

“This year, we kicked off the expansion of our first internal cellular modem that will enable another key strategic transition,” Mr Srouji said.

“Long-term strategic investments just like these are a critical part of enabling our products and making sure we've a wealthy pipeline of ground breaking technologies for our foreseeable future.”

A cellular modem is among the most important elements of a smartphone, allowing phone calls and connection to the internet via cellular networks.

Mr Srouji said the $1 billion acquisition of Intel’s modem business in 2019 helped Apple create a staff of hardware and program engineers to develop its cellular modem. He said the modem is among a few cellular chips the company designs, including the W-series in the Apple View and the U1 ultrawide-band chip in the iPhone for specific location information.

The most recent iPhones with 5G use parts from Qualcomm. Before that, Apple employed Intel parts for a couple of years and purchased that business unit from the chipmaker.

Mr Srouji didn't say when the cellular modem would be prepared to ship in goods, but a 2019 patent arrangement between Apple and Qualcomm carries a six-12 months licensing pact. Qualcomm charges permit service fees to phone makers predicated on wireless patents it owns, whether or not they work with its chips or not.

In the ending up in employees, Mr Srouji also highlighted Apple’s other focus on chips, like the new M1 processors in the most recent MacBook Air, MacBook Pro and Mac mini.

Apple is focusing on a “relatives” of Mac chips, Mr Srouji said. Apple is normally planning upgrades that can improve on Intel’s most effective computer chips.

Apple features been hiring engineers from Qualcomm for years to greatly help it build the modem, and has offices focused on the effort found in San Diego, in its Cupertino, California headquarters and found in Europe.