“While rumors have long claimed that Apple has plans to replace Intel’s x86 chips in Macs with its own custom ARM Application Processors, there are a series of more valuable opportunities available to Apple’s internal silicon design team, each of which has the potential to replicate Apple’s history of beating Intel in mobile chips,” Daniel Eran Dilger writes for AppleInsider.
“Rather than further alienating Intel with plans to replace the Mac’s dependance on x86 chips (for fewer than 20 million computers sold every year),” Dilger writes, “it would appear to make more sense for Apple to first apply its chip design team to the task of replacing Qualcomm as its supplier for the order-of-magnitude greater number of 4G baseband chips it has to buy (at a similar name-brand premium) for use in its iPhones and cellular iPads (north of 200 million per year).”
“According to the bill of material estimates (of unverifiable accuracy) published by IHS iSuppli, Apple’s own A8X Application Processor (together with the separate M8 motion coprocessor!) ostensibly costs Apple $22 per device, while Qualcomm’s MDM9625 baseband and other wireless chips cost $33 per device,” Dilger writes. “Eliminating Qualcomm by creating a custom, in-house baseband chip (or integrating the technology into its own Ax Application Processor package) wouldn’t completely erase the need to include other wireless chips, but would shave off significant expense.”
Much more in the full article here.
Along with Qualcomm’s chip, comes essential patent licensing, from Samsung and other parties. If Apple saw that they could licenses cellular technology for cheaper, they would do it. However I think they are getting more for their money than the article mentions.
“Eliminating Qualcomm by creating a custom, in-house baseband chip (or integrating the technology into its own Ax Application Processor package) wouldn’t completely erase the need to include other wireless chips, but would shave off significant expense.”
This statement would seem to be erroneous.
Crabapple’s conclusive judgement over this issue……..
Drip feed a dangerous animal and it will not feel the need to eat you.
Don’t drip feed it and it will see you as the nearest and easiest meal ticket.
Doesn’t Qualcomm have a stronghold of patents in that area? If so, they wouldn’t go away quietly.
Having now actually read TFA, I see that it discusses that at length.
Wish every commenter would do their homework, a few here don’t seem to get it like you did even after numerous point-outs (like our friend Bash Obama)
Your admission of getting it after having Read the Fsking Article was refreshing, thanks
The best part about admitting one’s mistakes is that there are so many opportunities 🙂
Apple has bigger issues to deal with than entering a brand new arena of chip design, where they would have to hire experienced staff and start nearly from scratch with all problems.
Everybody needs friends who help keep the enemies at bay.
Is it all that easy to jump from one processor design to another without bringing in a whole lot of experienced engineers in that area? Qualcomm must have accumulated a whole lot of expertise in building broadband processors over the years. It likely wouldn’t be that simple to duplicate or exceed Qualcomm’s knowledge overnight.
I’d like to see Apple go after battery tech more than anything. Improved battery life would top any number of improvements Apple could make to their mobile products.
I like your logic, as you’ll see in my post below.
BUT: Apple DID go after battery tech, and very successfully I might add. They bought the Mallory lithium battery division from Duracell many years ago and ran with it. Among other benefits, it’s one reason Apple has been able to design their own batteries for the slick MacBook designs. It’s also one reason Apple batteries no longer explode, burn, melt, etc. (unless spurned to by LUSER behavior). Apple is no longer beholden to any OM battery manufacturer.
As for improving battery technology in general, Apple has been looking to Tesla Motors for some help. Battery technology remains remarkably primitive compared to the computer technology it enables.
While stupid rumors have long claimed that Apple has plans to replace Intel’s x86 chips in Macs with its own custom ARM Application Processors…
…Let’s hit our head on the diving board and hallucinate…
Dan, I believe Apple would have to acquire the ability to design and build their own baseband processor chips. I suppose starting a rumor that Apple is going to buy Qualcomm might apply. – – Seriously, using the stupid A-Series Mac rumors as a springboard is a bad place to start.