Apple has begun developing their own cellular modem; Qualcomm shares drop

Apple has begun building their own internal cellular modem for future devices, a move that would replace components from Qualcomm, Johny Srouji, Apple’s senior vice president of hardware technologies, told staff in a virtual meeting on Thursday.

iPhone 12 models use Qualcomm's X55 modem
iPhone 12 models use Qualcomm’s X55 modem

Mark Gurman for Bloomberg News:

Qualcomm shares dropped as much as 6.3% in extended trading.

“This year, we kicked off the development of our first internal cellular modem which will enable another key strategic transition,” [Srouji] said. “Long-term strategic investments like these are a critical part of enabling our products and making sure we have a rich pipeline of innovative technologies for our future.”

Srouji said the $1 billion acquisition of Intel Corp.’s modem business in 2019 helped Apple build a team of hardware and software engineers to develop its own cellular modem… The latest iPhones with 5G use parts from Qualcomm. Before that, Apple used Intel parts for a few years and then purchased that business unit from the chipmaker.

The move extends Apple’s push toward greater reliance on its own parts at the expense of Qualcomm, Intel and others.

MacDailyNews Take: Eliminate the middleman.

I’ve always wanted to own and control the primary technology in everything we do.Steve Jobs, October 12, 2004

• In order to build the best products, you have to own the primary technologies. Steve felt that if Apple could do that — make great products and great tools for people — they in turn would do great things. He felt strongly that this would be his contribution to the world at large. We still very much believe that. That’s still the core of this company.Apple CEO Tim Cook, March 18, 2015

21 Comments

  1. Cook makes a great Steve Jobs parrot. Monkey see, monkey do. Sick of even see that guy in any Apple presentation. Fakey voice, fakey excitement, physically painful to watch.

    1. …and the CEO of the most profitable company in the world. Leader of the company that continues to produce innovative products.
      What is wrong in following in Steve Job’s footsteps? SJ success, especially in the last 2 decades was to work with people that could make his vision come true. Cook was the key employee to help make Apple profitable again and create a manufacturing network unsurpassed in the world. That solid based Mae it possible to manufacture hundreds of millions of units each year and make very healthy profits from that.
      Tim may not be a great orator or showman but he has run the company very well. Since I am an investor I personally prefer someone who is very competent at running the company than someone who looks good on stage. SJ was unique and no one could every replace him but Cook continues to steer the company well and ensure that he has an excellent team to support him.

      1. The Apple APOLOGIST speaks again but glosses over many facts.

        “Cook was the key employee to help make Apple profitable again”

        NO, NO, NO! The key employees were Steve Jobs and Scott Forstall introducing OSX, iPod and iPhone. Sheesh, can you be anymore clueless?

        Cook exported hundreds of thousands of jobs outside the U.S. for cheap labor courtesy of NAFTA the worst trade bill ever passed into law by disgraced liar President Bill Clinton to achieve record profits. On that we can agree.

        “Tim may not be a great orator or showman but he has run the company very well.”

        Tim is absolutely terrible as a spokesman very wooden and the fake ginned up hushed excitement has gotten old years ago.

        As to running the “company very well” yes, you have a point. Cook is a competent caretaker CEO riding the iPhone gravy train in a first class seat. Apple innovation he had nothing or little to do with except keep the manufacturing trains running on time. While Apple shaves millimeters off of products, removes valuable ports and connectivity, and the latest customer RIPOFF is selling new iPhones for the same price removing headphones and a charger in reduced packaging. That’s how you make millions more shareholders, so again agree there.

        “I personally prefer someone who is very competent at running the company than someone who looks good on stage. SJ was unique and no one could every replace him”

        No! Fallacy and take off the idealistic rose colored glasses. SJ built the company as every good manager does to RUN ITSELF and any number of competent CEOs world over that are as tech clueless as Cook, can assume and sit in the spaceship CEO driver seat come 9AM Monday morning.

        Agree SJ was mercurial and unique creative GENUIS, but has everyone forgotten his right hand protege creative genius in his own right Scott Forstall?

        Read up on Scott’s Apple assignments and accomplishments and you will educate yourself he worked hand in hand with Steve on the majority of the most important Apple products and software that made Apple GREAT!

        Meanwhile, Cook was minding the cheap labor trains to make sure they ran on time.

        I’ve been saying it for years, Scott has the inside Apple experience, worked with the great one on Apple’s finest products and NO ONE on planet Earth is better suited to replace the beancounter Cook empty suit, er’ shirt…

          1. You only voted for Biden because he said President Obama was the FIRST mainstream African American who was articulate, bright and CLEAN.
            We all recognize makes him, and by extension, you.

          2. Yes, Cook is a bean counter CEO winner riding the iPhone gravy train in a first class seat after exporting thousands of jobs to Communist cheap labor China. Are you an idiot and BLIND to this FACT Apple APOLOGIST?

            President Trump garnered over 7 million more votes this election and record numbers for a Republican in history from minorities and women and he lost? While Republican women made historic gains in Congress at the same time. Obviously you have no problem with stopped counting votes when Trump was far ahead in the middle of the night and several Democrat swing states BROKE STATE LAW at the last minute to give Biden a win.

            It’s obvious DISHONEST LIBERALS like yourself have no problem winning at all costs and sleep well at night.

            President Trump in 2024!!!…

            1. I will sleep better at night after January 20 when our nuclear codes are not in the possession of somebody who thinks Hugo Chavez rose from the grave to bribe a bunch of Republican election officials and Federalist Society-vetted Trump-appointed judges (55-1 and rising) into opposing him.

            2. You are such a LIBERAL LIAR TxUseless inventing problems in your deranged brain that do not exist.

              The next four years will be a total DISASTER in politics and I will remind you at every turn…

    2. LOL, and if Tim didn’t follow Steve’s playbook, you’d be criticizing him for not doing what Steve would do. Every CEO I see nowadays, parrots Steve’s presentation style, from casual dress, to one more thing. It’s post-Steve’s world, and we’re just living in it.

  2. Everyone is entitled to their opinion here, of course. I think Cook has navigated the rocky waters of privacy, China, the pandemic, and numerous other crises and challenges extremely well. Jobs chose him to succeed him for good reason and he has more than lived up to expectations.

    Having a CEO like Jobs or Elon Musk who focuses so intently on the product is rare and wonderful. Maybe the company will find someone who is able to do that in the future. Certainly Glasses and Project Titan might benefit from that sort of product development/user experience leadership and vision. But I trust that the rest of the team can get it done without someone like this. It’s been quite a while since the company has had a dud – and I’m not referring to unit volumes, necessarily. Apple has been cranking out great products and services consistently in the last 3 years, culminating with M1 Macs. Ok the jury is still out on News+ and TV+.

  3. Shows how inept Intel was that Apple made that IP work. It’s good news because I had little confidence in Intel’s IP. Only Apple could convert iron into gold.

  4. I wonder if Apple’s acquisition under Tim of Intel’s undeveloped modem IP in 2019 can be compared in some sense to Apple’s acquisition under Steve of Xerox PARK’s rudimentary GUI in 1979(?), 40 years before, and be as impactful and as stealthy. Did Apple hoodwink Intel, fairly of course, or, just like PARK, not recognize its crownish jewels?

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