Apple recently renewed its 5G licensing agreement with Qualcomm as its homegrown solution still faces development challenges. According to reports, due to continuous delays, the tech giant will not be able to launch customized 5G modems in late 2025 or early 2026, and the first products may appear in the new iPhone. Even if the event is successful, however, a new report states that Apple will continue to rely on Qualcomm's 5G modems, but not necessarily use them in iPhones.
It’s unclear how many of Apple’s self-developed 5G modems it plans to produce, but considering that each 5G modem will help Apple increase its profit margins compared to iPhones using Qualcomm baseband chips, mass production of millions of 5G modems is likely the company’s goal. Bloomberg's Mark Gurman said in his latest "PowerOn" newsletter that Apple's own 5G modem will be at least two or three years away from being available in Apple Watch, iPad and Mac.
"But the real test will be whether Apple can successfully apply its home-grown approach to new areas. That includes building its own cellular modem, a part now expected to be ready around 2026. It could then take another two or three years before the company can integrate the chip into cellular versions of the Apple Watch and iPad, as well as into Macs (once the part is integrated into the company's system-on-a-chip)."
According to the current expected launch schedule, Apple's first self-developed 5G modem will be available as early as the end of 2025, and according to Gurman's estimate, Qualcomm will continue to supply it for another two to three years. During this period, after the latest agreement expires, Qualcomm may charge Apple additional fees based on losses caused by Apple's loss of iPhone 5G modem orders.
In short, Apple won't be getting rid of Qualcomm this year, although its efforts in this regard are worth looking forward to. Another company Apple plans to reduce its reliance on is Broadcom, which plans to mass-produce custom Bluetooth and Wi-Fi chips. Unfortunately, the tech giant originally planned to launch these two chips in 2025, but just like the development of 5G modems, Apple continues to hit roadblocks in the development of these chips, and we will have to wait until the end of 2025 to see the results of the company's progress.