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Apple's self-developed iPhone 5G baseband chip fails, and Qualcomm is still the exclusive supplier of this component in 2023

06/29/2022 Apple iPhone 5G, iPhone 5G chip, baseband chip, Qualcomm, 5G chip

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  Tianfeng International analyst Ming-Chi Kuo released the news on Twitter today. The latest investigation shows that Apple's own iPhone 5G baseband chip development may have failed, so Qualcomm will continue to be the exclusive supplier of 5G chips for the new iPhone in 2023, with a supply share of 100%. (Qualcomm had previously estimated at 20%).


  Qualcomm's revenue and earnings per share between the second half of 2023 and the first half of 2024 may exceed market expectations, Kuo said. Apple will continue to develop its own 5G chips, but by the time Apple is successful and can replace Qualcomm in the iPhone, Qualcomm's other new businesses should have grown enough to offset the loss of iPhone 5G chip orders.


  Apple has worked for years to get rid of Qualcomm in a protracted legal battle between the two sides. Apple had planned to use Intel's 5G chips in the 2020 iPhones, but it didn't materialize because Intel couldn't make 5G chips that met Apple's standards.


  Apple settled with Qualcomm in 2019, and since then, Apple has used Qualcomm 5G baseband chips in its iPhone and iPad product lines. In order to develop its own 5G baseband chips, Apple even acquired Intel's baseband chip business to seize the opportunity. Last year, Qualcomm said it expected to supply only 20 percent of the modem chips used in iPhones by 2023.


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