In a series of Tweets published earlier today, veteran Apple analyst Ming-Chi Kuo has claimed that Apple’s efforts to develop its own 5G modem chips in time for the 2023 ‘iPhone 15’ lineup may have ‘failed.’
With reports suggesting that Apple was on track to develop an in-house modem for its 2023 iPhones, Qualcomm was expected to lose almost 80% of its Apple business by 2023.
But now, Kuo notes that Qualcomm will remain the exclusive supplier of 5G chips for the iPhones at least through next year.
(1/4)
[Company Update] Qualcomm (QCOM.O)My latest survey indicates that Apple’s own iPhone 5G modem chip development may have failed, so Qualcomm will remain exclusive supplier for 5G chips of 2H23 new iPhones, with a 100% supply share (vs. company’s previous estimate of 20%).
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo)
Kuo also noted that Qualcomm’s revenue and EPS in 2H23-1H24 will likely beat market consensus “thanks to its sole supplier position for 5G chips of 2H23 new iPhones.”
“I believe Apple will continue to develop its own 5G chips, but by the time Apple succeeds and can replace Qualcomm, Qualcomm’s other new businesses should have grown enough to significantly offset the negative impacts caused by the order loss of iPhone 5G chips.”
Apple’s eventual goal, however, is still to develop a custom-designed 5G modem for its iOS devices.
