More evidence that Apple is building its own modem

“In a recent article published in the EETimes, Will Strauss, a well-respected wireless technology analyst, said he believed that Apple will ‘eventually be designing their own multimode LTE modem,'” Ashraf Eassa writes for The Motley Fool. “He cites the fact that Apple has hired ‘lots of wireless talent’ as the reason for his suspicions.”

“The idea that Apple is building its own modem isn’t new, but the fact that such a well-respected (and connected) industry analyst thinks Apple is likely to do so lends that notion a lot of credence,” Eassa writes. “And from a strategic perspective, it’s starting to make a whole lot of sense for Apple to roll on its own.”

“One oft-cited reason for Apple to potentially build its own cellular chips is to save money, but given how expensive modem and RF chip development is, I’m not convinced that cost savings would be the primary motivation,” Eassa writes. “In fact, I think the reasons for Apple to build its own wireless solutions are more strategic than cost-related.”

Read more in the full article here.

MacDailyNews Take: Apple has the money and the talent to do whatever they want to do. In general, it’s a good idea for Apple to work to make thmeselves less dependent on other companies where possible and where costs savings can be realized (long term in this case).

14 Comments

  1. Actually, IF (huge IF) Apple is doing its own modems and RF components could be a bit more deeply rooted.

    LTE-A has a lot of features that most wireless chip makers (including Qualcomm and the rest) won’t roll into their chips. LTE-A is an attempt to be the next variant of LTE and wants to be all things to all users.

    However, and more to the point, LTE-A has some security features that typical implementations likely won’t include. Apple, as a company that is atypically focused on end user security, may implement their own chips in order to implement those non typical (but still standards compliant) security features.

    Just a thought.

    1. It will lead to another patent fight. Qualcomm has a huge pile of patents in this area. Using their chips obviously makes that a non-issue, but Apple making its own will invite a big battle.

  2. Let’s see. . .
    They in talks to start their own streaming service, its rumored that they will buy a satellite from Boeing, they are going go start selling their own TV service, and now we hear that they may be building their own modem.

    Perhaps, it will be a satellite based modem, to allow wi-fi, internet connectivity, and TV streaming apart from the current providers. Since several of them don’t want to play nice with Apple, how about simply by-pass them entirely? Plus, with a satellite based broadband solution for Internet, TV and cellphone, you can also bypass all of the local community cable regulations and monopolies.

    Leave it to Apple to just push past everyone.

  3. I would think the primary reason would be to be able to deliver things at their own pace. If they’re reliant on other companies to roll out new standards and features whole products can be delayed or weakened.

  4. One obvious reason for Apple to develop their own chipset would be to finally eliminate all those silly SEP/FRAND patent infringement lawsuits. They shouldn’t be held hostage to companies who have a chip on their shoulder, so to speak.

    1. Actually, if they are building on top of any standard (like supporting LTE which would seem to be a necessity) they will license the SEP/FRAND patents associated with that standard.

      The litigation problem was that Samsung and others tried to make unreasonable FRAND licensing demands. Hopefully that is done, since they were slapped down for that and dropped demands in face of investigations.

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