Apple reveals first custom modem chip, shifting away from Qualcomm

Apple has revealed its first custom modem chip that was in the iPhone 16e launched yesterday, signalling a shift from Qualcomm.

Apple on Wednesday revealed its first custom-designed modem chip that will help connect iPhones to wireless data networks, a move that will make the company less reliant on chips from Qualcomm that also power its Android rivals.

The chip will be at the heart of Apple's $599 iPhone 16e unveiled on Wednesday. Apple executives told Reuters these chips will roll out across its products in the coming years but did not give details on the timing.

The chips are part of a new collection of components Apple calls the C1 subsystem. A subsystem houses key components like processors and memory.

The iPhone 16e, which will feature the same A18 processor chip as the rest of its iPhone 16 lineup, has the best battery life of any of its 6.1-inch phones thanks to the C1 system, Apple's Kaiann Drance, vice president of iPhone product marketing, told Reuters. The iPhone 16e will also have Apple's latest artificial intelligence features, Drance said.

Modem chips are hard to make because they must be compatible with hundreds of carriers in scores of countries. Only a handful of companies around the world including Samsung Electronics , MediaTek and Huawei Technologies , have successfully created one.

For years, Apple sourced modems from Qualcomm, the world's biggest supplier of the chips. Qualcomm chips also power Android gadgets and Windows laptops that compete with Apple's devices.

Apple fought a protracted legal battle with Qualcomm but ultimately settled and signed new supply agreements with it in 2019 after alternative suppliers such as Intel failed to deliver a viable alternative.