Apple has discreetly entered the modem technology arena with the launch of its iPhone 16e last month. This move marks Apple's first in-house designed cellular modem, named the C1, a significant milestone following its acquisition of Intel's modem business in 2019. The iPhone 16e, touted as Apple's most affordable smartphone in its latest range, signifies the tech giant's initial steps in developing modems for its higher-end devices. Despite these advancements, Qualcomm, a dominant player in the modem supply market, remains a key competitor.
Qualcomm has long been the primary provider of modem technology for Apple's iPhones. However, with the unveiling of Qualcomm's X85 modem, CEO Cristiano Amon envisions a future where this partnership may dissolve by 2027. The X85 is not only a high-performing modem but also integrates advanced AI capabilities, setting a new benchmark for competitors.
"If modem is relevant there's always a place for Qualcomm technology." – Cristiano Amon
Qualcomm's latest modem is expected to create a significant performance gap compared to Apple's nascent C1. According to Cristiano Amon, this technological leap will distinguish premium Android devices from iOS counterparts, enhancing consumer preferences in an era where AI-driven modems play a pivotal role.
"In the age of AI, modems are going to be more important than they have ever been. And I think that's going to drive consumer preference about do they want the best possible modem in the computer that's in their hand all the time." – Cristiano Amon
The X85's AI integration is designed to boost performance by handling weaker signals more efficiently, which could potentially redefine user experience on mobile devices.
"It's the first modem that has so much AI, it actually increases the range of performance of the modem so the modem can deal with weaker signals." – Cristiano Amon
Apple's strategic decision to design its modem in-house mirrors its approach with smartphone processors, aiming for greater control and innovation within its product ecosystem. While Apple's modem business is still nascent, it paves the way for future developments in the company's hardware capabilities.
"What that will do will set a huge delta between the performance of premium Android devices and iOS devices when you compare what Qualcomm can do versus what Apple is doing." – Cristiano Amon