How Apple's ambitious In-House 5G Modem Project Aims to Reshape Connectivity and Cut Ties with Qualcomm
Apple is on the cusp of rolling out the first ever modem designed entirely by Apple
Apple’s ongoing efforts to reduce reliance on Qualcomm have taken a significant leap forward with the development of its first in-house 5G modem, codenamed Sinope. According to a new report by Bloomberg’s Mark Gurman, insiders say that Apple has made a three-year rollout plan, starting with lower-end devices in 2025. This marks a critical step in Apple’s strategy to strengthen vertical integration, following years of legal disputes and financial dependence on Qualcomm.
If you’re not familiar, a modem is a chip that allows smartphones, tablets, smart watches or any other device equipped with one to connect to cellular towers in order to make calls, send/receive text messages, or browse the internet. It is a crucial piece of technology that’s vital to the function of our connected world.
There are many companies which specialize in designing and manufacturing cellular modems, and far less who can produce 5G modems, but none are more accomplished than Qualcomm. That’s why they have been Apple’s first choice when it comes to sourcing modems for its various products, most notably the iPhone.
However, in recent years, the partnership between the two companies has faced some difficulties involving patent licensing disputes, lawsuits and countersuits, and investigations by regulators which ignited a desire for Apple to break away from them. There are also strong financial incentives for Apple to do so as they pay Qualcomm $7.2 billion annually for access to its tech, that equates to ~20% of Qualcomms’ total annual revenue.
As a result, Tim Cook issued a directive in 2018 for Apple to start designing its own modem. They hired engineers, set up R&D facilities throughout the globe, and invested billions into the project. But that was not enough on its own, Apple needed a strong head start to compete with Qualcomm’s extensive patent library and institutional knowledge which they had been building for nearly four decades.
In order to do that, Apple acquired the majority of Intel’s smartphone modem business in 2019 for $1 billion. The deal included 17,000 patents, intellectual property rights, testing and development equipment, as well as the hiring of 2,200 employees (mainly engineers) who worked for Intel’s modem arm.
Development Challenges
Despite the money, time and effort invested into the project, Apple faced many challenges designing an adequate modem, including early prototypes being too large, prone to overheating, and inefficient in power usage.
In hindsight, these challenges make sense. Apple’s hardware technologies team had mainly been in charge of designing the A and M-series processors, they did not have experience with modems prior to 2018.
This lack of experience meant that the team’s management was susceptible to underestimating the complexity of the task they had been given, thinking the process wouldn’t differ greatly from their usual work
That, However, turned out to not be the case. The primary difference between processors and modems is that the former only have to work with Apple’s own hardware standards, where as modems have to abide by strict connectivity standards which are not set by the company, the modems also have to be backwards compatible with 2G, 3G, and 4G networks all without infringing on patents that belong to Qualcomm and other companies in the industry. It is a monumental task that couldn’t be overcome without making structural changes to the management and development practices that Apple was used to employing.
Light at the end of the tunnel
After reorganizing the projects management, adjusting development practices, as well as hiring engineers directly from Qualcomm—Apple is now confident they will be able to deliver a viable modem in 2025.
According to Gurman, the modems will be manufactured by TSMC (Taiwan Semiconductor Manufacturing Company) and will first be used in the upcoming iPhone SE as well as lower-end iPads. TSMC is also in charge of manufacturing the processors used for the iPhone, iPad, Mac, and other products.
First-Generation Caveats
Apple won’t use the modems for higher-end products in 2025 since its the first-generation of the technology, Apple needs to ensure its functionality is rock solid before adopting it for the entire product lineup.
Furthermore, the modems overall are currently less advanced than the ones offered by Qualcomm. The differences include
No support for mmWave: Sinope will instead employ the Sub-6GHz band for connectivity to cell towers. This should not be a big deal for end users as both technologies are capable of several gigabit per second (Gbps) downloads speeds. Apple reportedly conducted lab tests where they were able to achieve download speeds of up to 4Gbps.
Smaller carrier aggregation: Sinope will be able to combine bands for up to four-carrier aggregation as opposed to the six or more Qualcomm is capable of. Carrier aggregation allows wireless carriers to increase network speed and capacity by assigning multiple transmission frequencies to a single user as opposed to using a single one which may become congested with traffic. This is especially useful in dense urban areas or downtowns where there are many devices competing for bandwidth.
The Upside
With that said, Sinope will have better overall optimization as it works with the Apple-designed main processor to scan for service, manage power usage for better efficiency, and have superior on-device support to connect to satellite networks such as SpaceX’s Direct-to-Cell service.
The modem will also allow Apple to have better compliance with specific absorption rate (SAR) limits which according to the U.S. Federal Communications Commission is a “measure of the rate of RF (radio frequency) energy absorption by the body.“ These limits are set by communication regulators such as the FCC, companies are encouraged to stay below those limits to the best of their ability.
Beyond 2025
In 2026, Apple wants to catch up to Qualcomm in-terms of performance and support for the latest technologies with a second-generation modem codenamed Ganymede. This chip will be used in higher end products for the first time, and they have to be given that Apple’s deal with Qualcomm is set to expire in 2026.
Ganymede will have support for mmWave, and will be to handle six or eight carrier band aggregation. This will help Apple achieve download speeds of 6 Gbps.
In 2027, Apple wants to get ahead of Qualcomm with a third-generation modem codenamed Prometheus. By that point, Apple expects to have better overall performance that what Qualcomm is able to offer.
Key Takeaways
The foundation has been set for Apple to able improve and eventually perfect the technology in accordance with their long-term goals and aspirations, it should be no different than how transformational Apple Silicon has been for the Mac and iPad as well as the effects it had on Apple’s partnership with Intel.
Getting to this point was not easy for Apple, they worked on the project for years despite repeated setbacks. That effort was not in vain though as in a just a few years they will secure complete control over a yet another vital aspect of its supply chain.
This will have the effect of further tightening its already impressive vertical integration and allow the company to continue innovating on its product lineup in ways that weren’t technically possible before.
As a result, Apple will be able to save billions of dollars in licensing fees, achieve better connectivity performance than what’s achievable with a 3rd party supplier, and open the doors for new and exciting capabilities. The company’s customers, shareholders, and employees all stand to benefit from these new developments.