Apple finally launches its in-house modem with iPhone 16e, moving away from Qualcomm. Here's why it matters

Apple has taken a big step towards independence by unveiling its first in-house modem, as it continues to reduce its dependency on Qualcomm. This new modem chip, which plays a key role in the freshly announced $599 iPhone 16e, will gradually roll out across Apple’s product lineup in the coming years.

For years, Apple has relied on Qualcomm’s modem chips — the same ones that power Android devices —  but that’s changing. With its latest move, Apple is making sure it has even more control over its hardware, creating a modem designed specifically for iPhones and other Apple devices.  

A custom modem built for Apple’s future

Building a modem from scratch is no small feat. These chips need to work seamlessly with hundreds of mobile carriers worldwide, and only a handful of companies, namely Intel, Qualcomm, MediaTek, Samsung, and Huawei, have managed to develop their own. Apple’s new modem is part of what it calls the C1 subsystem, a set of key components designed to improve performance, efficiency, and battery life.

The company has spent years testing the modem with 180 carriers across 55 countries to ensure it works globally. Apple’s senior vice president of hardware technologies, Johny Srouji, described the C1 as the foundation of a platform Apple will refine and improve over multiple generations, making it a long-term investment rather than just another component.

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One of the biggest advantages of Apple’s modem is how well it works with its other chips. Unlike third-party modems that function separately, the C1 can communicate directly with the iPhone’s processor, prioritising important tasks like video calls and live gaming when networks are congested. This should make iPhones feel smoother and more responsive compared to devices relying on off-the-shelf modems.

What’s the catch?

Apple’s modem may be a major milestone, but it’s not perfect — yet. One major limitation is its lack of support for millimetre-wave 5G, an area where Qualcomm still leads. Apple hasn’t shared if, or when, it will add this feature, leaving Qualcomm with a small but important role in Apple’s supply chain for now.

That said, Qualcomm is already preparing for Apple’s shift. The chip giant expects its share of Apple’s modem supply to drop from 100 per cent to as low as 20 per cent by next year. Still, thanks to a licensing deal that runs until at least 2027, Qualcomm won’t be completely out of the picture anytime soon.

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Why this move matters

Apple’s journey to modem independence hasn’t been easy. It once tried to work with Intel, but that plan fell apart, forcing Apple to return to Qualcomm. This time, though, it’s different — Apple has built its own chip, tailoring it specifically for its ecosystem. Unlike Qualcomm and MediaTek, which design modems for a range of manufacturers, Apple’s focus is on making a modem that works perfectly within its own devices.

With this move, Apple is inching closer to full control over its hardware. It’s not just about breaking ties with Qualcomm — it’s about making iPhones even more seamless, efficient, and distinct from the competition. And while Apple’s modem won’t replace Qualcomm’s chips overnight, this is the start of a big transition — one that could redefine Apple’s technological independence in the years ahead.