Apple’s Reliance On Qualcomm For Custom 5G Modems To See Downward Trend Starting Next Year, As It Plans To Complete Transition By 2027

Apple is working on its custom 5G modems to reduce its reliance on Qualcomm, and the company's plans are not confirmed for when it wants to make a switch. For now, it is dependent on Qualcomm to supply modems for the iPhone, but it appears that the in-house modems will see daylight as soon as next year.

Analyst estimates Apple's custom 5G modems will start rolling out in iPhones starting next year

It was previously reported that Apple could debut its custom 5G modems with the launch of the iPhone SE 4, which is rumored to launch in the first half of next year. What this means is that the latest speculation is in line with past reports, as the company could have overcome the hurdles for its 5G modem. The news was shared by analyst Ming-Chi Kuo, stating that the estimated shipments of Apple's custom 5G modems will reach 35 to 40 million units by next year.

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Kuo also shared future shipment estimates, suggesting that it will grow to 90 to 110 million units in 2026 and 160 to 180 million units in 2027. Based on past reports, the analyst claimed that Apple would release two new iPhone models next year that will house the company's in-house 5G modems, and while the iPhone SE 4 could be one of them, the second model could be from the iPhone 17 lineup, potentially the iPhone 17 'Air.' The iPhone 17 Air will launch in the third quarter of next year, possibly alongside the iPhone 17 lineup in September.

As mentioned, Apple relies on Qualcomm to supply 5G modems for connectivity and similar to its transition from Intel to its custom Silicon, the company would move away from its current supplier. The company is already in agreement with Qualcomm for this year's modems going through 2026, which means that Apple still has a few years before it entirely shifts to its custom solution.

Apple acquired most of Intel's modem business in 2019, and building on top of it requires research, time, and investment. It