There were rumors that Qualcomm would no longer be Apple’s exclusive 5G modem supplier after the iPhone 15 family materialized later this year. However, with the California-based giant experiencing issues with its in-house solution, it gives its chipset manufacturing partner another year to enjoy a large payday as it is said to supply 5G modems to the iPhone 16 lineup too.
Apple’s continued struggles with its in-house 5G modem is also one reason why the upcoming affordable iPhone SE 4 has been delayed
Qualcomm will likely supply Apple with its Snapdragon X70 5G modem next year when the iPhone 16 series launch, and it is said to tout power-efficiency improvements over the Snapdragon X65 found in all the iPhone 14 models, though its maximum downlink speed remains unchanged at 10Gbps. According to Barclays analysts Blayne Curtis and Tom O’Malley, Apple’s continued issues with the company’s own developed 5G modem is also the reason why the iPhone SE 4 will be delayed by at least two years.
Going by previous statistics alone, Qualcomm appears to charge its partners a hefty premium if it ends up being an exclusive supplier for a specific component. For the Snapdragon 8 Gen 2, the San Diego firm was reportedly charging $160 per chipset, making it more expensive than Apple’s A16 Bionic. The Snapdragon 8 Plus Gen 1 was not cheap either, with rumors claiming that Qualcomm was charging clients $130 apiece. Given that the company will be the exclusive 5G modem supplier for the iPhone 16 lineup, it is not difficult to imagine how much it will charge per modem.
Assuming that Qualcomm would charge Apple the same $160 amount for the Snapdragon X70, launching the iPhone SE 4 with it will be pointless as the 5G modem will eat all the margins. Sadly, despite Apple having kicked off its own modem development in 2020, it has been three years since we have heard about any noteworthy results. There have been whispers that Apple will have its first batch of custom 5G modems completed by 2025, so we look forward to seeing how those chips behave. Naturally, we are expecting Apple to deliver the same performance and efficiency as its A-series of SoCs.
News Source: MacRumors
