Apple moves modem chip engineering unit into in-house hardware technology group

“Apple Inc has moved its modem chip engineering effort into its in-house hardware technology group from its supply chain unit, two people familiar with the move told Reuters, a sign the tech company is looking to develop a key component of its iPhones after years of buying it from outside suppliers,” Stephen Nellis reports for Reuters.

“Johny Srouji, Apple’s senior vice president of hardware technologies, took over the company’s modem design efforts in January, the sources said,” Nellis reports. “The organizational move has not been previously reported… The modem efforts had previously been led by Rubén Caballero, who reports to Dan Riccio, the executive responsible for iPad, iPhone and Mac engineering, much of which involves integrating parts from the company’s vast electronics supply chain.”

“Making its own modem chips would likely cost Apple hundreds of millions of dollars or more per year in development costs, analysts said, but could save it money eventually. Modem chips are a major part of the cost of Apple devices, worth $15 to $20 each and likely costing Apple $3 billion to $4 billion for the 200 million or so iPhones it makes a year, said Bernstein analyst Stacy Rasgon,” Nellis reports. “Apple may also benefit by combining its modem chips with its processor chips, as Samsung, Huawei and most other phone makers do. That saves space and battery life, two important considerations if Apple introduces augmented reality features into future products.”

Read more in the full article here.

MacDailyNews Take: Full speed ahead (literally)!

The loss of Srouji would be an terrible one for Apple. In fact, we can’t think of a more valuable Apple SVP.MacDailyNews, January 15, 2019

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Johny Srouji staying at Apple, not a candidate for Intel CEO – January 26, 2019

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