Qualcomm shows Apple’s modem transition is almost complete
Apple may be moving faster than expected in its modem development work, and Qualcomm’s latest comments suggest that shift is already reshaping the iPhone supply chain. Qualcomm overnight said supply constraints are shrinking some of its Apple business faster than anticipated . “It’s availability of supply,” CEO Cristiano Amon told Reuters . While he wasn’t specific, that likely reflects the…
Qualcomm recently disclosed that Apple's modem transition is proceeding more swiftly than initially anticipated, which is reshaping the iPhone supply chain. In an interview with Reuters, Qualcomm CEO Cristiano Amon indicated that the availability of supplies is a key factor behind this shift, suggesting that the company's share of components in the upcoming iPhone launch will be significantly lower than previously estimated.
This development is part of a broader industry shift, with Qualcomm focusing on AI datacenter demand for future income. Additionally, Apple plans to increase modem prices starting September 1, with the patent licensing agreement between the two companies set to expire in March 2027. Reports have suggested that Apple intends to release iPhones twice a year, with the Pro range updated in the fall and entry-level devices in the spring, potentially leading to more consistent quarterly earnings and reduced short-term demand for components.
Apple's own modem development plans, including the new C2 modem, demonstrate their confidence in this transition. While Qualcomm's role in supplying mmWave support may diminish due to Apple's focus on other modems, Apple's high confidence in its upcoming modem suggests a clean sweep of their business before the handover to new CEO John Ternus.
Written by urgent.news from Computerworld's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
