Last fall it was reported Apple was set to start using its own 5G modems instead of chips from Qualcomm for its iPhone. Many analysts expected Apple to adopt its own 5G modem chips for iPhone starting in 2023.
However, after Qualcomm announced its fourth quarter earnings on Wednesday after the bell, it now appears that an Apple-made 5G modem iPhone takeover will take longer than expected.
According to Qualcomm’s shareholder slide deck, the company notes, “For Apple product revenues, we now expect to have the vast majority of share of 5G modems for the 2023 iPhone launch, up from our previous 20% assumption.”
“Beyond this, there are no changes to our planning assumption,” said Qualcomm in its Q4 note to investors.
Qualcomm’s chief financial officer said last November the company expected to supply 20% of the 5G modems needed by Apple in 2023. But today’s announcement of “vast majority” appears to counter that statement.
Next year, many expect a new iPhone redesign, as this year’s iPhone 14 lineup is likely the last of a three-year design cycle.
“We are pleased to report another strong year, despite the macroeconomic challenges, as we continue to execute our strategy of transforming Qualcomm from a wireless communications company for the mobile industry to a connected processor company for the intelligent edge,” said Cristiano Amon, President and CEO of Qualcomm Incorporated, in a statement. “While our financial outlook is being temporarily impacted by elevated channel inventory, our diversification strategy and long-term opportunities remain unchanged.”
Qualcomm reported a record $11.4 billion in revenue for Q4 across handsets, automotive and Internet of Things.
