Apple breaks free: the era of in-house modems begins

Apple’s unveiling of the iPhone 16e in February 2025 marks a pivotal moment in the company’s history, introducing its first in-house modem, the C1, and signaling a strategic shift in its technological autonomy.

“We’ve always believed that we should own the primary technologies that our products are built on.” This statement from Apple’s CEO Tim Cook in a December 2024 interview with Wired encapsulates a long-standing philosophy that has guided the company’s strategic decisions. Over the years, Apple has systematically brought key technologies in-house, starting with the A4 CPU in 2010, followed by its GPU business in 2017, power management in 2018, and the launch of the in-house M1 Mac processor in 2020. This shift has been driven by a mix of internal development and strategic acquisitions, allowing Apple to maintain tighter control over its supply chain. Modem technology, however, remained one of the critical pieces outside Apple’s direct control. Qualcomm, with its dominant position in cellular connectivity, supplied Apple’s modems for years. The relationship between the two companies was often contentious, culminating in a major legal battle in 2017 over licensing fees. The dispute was settled in 2019, leading to a multi-year agreement whereby Qualcomm continued providing modem technology to Apple. However, it was only a matter of time before Apple sought to develop its own alternative.

Today, Yole Group releases a detailed analysis of the C1 modem: Apple iPhone 16E – C1 Modem. And more information about the market evolution and competitive landscape is available in the RF for 4G/5G Industry 2024… More

In 2019, Apple accelerated its push into modem development by acquiring Intel’s modem business unit. This effort came to fruition in early 2025 with the launch of the C1 modem in the iPhone 16e, Apple’s more budget-friendly model.

Hassan Saleh, Senior Market & Technology Analyst, Radio Frequency at Yole Group asserts: “By starting with an entry-level device, Apple ensured a gradual transition and could gauge customer reactions. If development stays on track, it may fully replace Qualcomm’s modem by 2027.”

Apple highlighted the C1’s energy efficiency as a key selling point, branding it as “the most power-efficient modem ever on an iPhone.”

Ihor Persukhov, Market & Technology Analyst, Radio Frequency at Yole Group explains: “Our in-depth analysis of the C1 technology confirms that Apple, leveraging its strong partnership with TSMC, fast-tracked the development of its first in-house modem. This power efficiency stems from Apple’s choice of advanced TSMC FinFET technology, ensuring lower power consumption and optimized performance.”

This aligns with Apple’s broader approach of optimizing battery life and system performance rather than chasing industry-leading raw speeds. While Apple’s initial modem may not surpass Qualcomm’s latest offerings, the company’s priority remains to deliver a seamless user experience rather than competing on technical specifications alone.

Qualcomm, well aware that Apple’s shift was inevitable, responded swiftly. At the Mobile World Congress in March 2025, the company introduced its X85 modem, boasting significant advancements over Apple’s C1. Qualcomm benchmarked the two, asserting that even its mid-tier offerings outperformed Apple’s modem. During the event, Qualcomm CEO Cristiano Amon stated, “From now on, Android devices will always be the fastest and the ones with the best connectivity,” subtly reinforcing that Apple’s modem technology would struggle to match Qualcomm’s, particularly in premium Samsung and other Android devices relying on its cellular solutions.

“Despite Qualcomm’s competitive stance, Apple’s strategy is less about competing head-on in performance and more about owning its ecosystem”, says Hassan Saleh from Yole Group. “By designing its own modem, Apple secures a long-term advantage, allowing for deeper integration with its hardware and greater control over future innovations.”

The transition raises key questions:

While the iPhone 17 Pro and Pro Max will likely still feature Qualcomm technology, Apple’s roadmap suggests a gradual phase-out over the next two to three generations.

The full impact of Apple’s modem shift remains to be seen.

What is clear, however, is that the company is taking yet another step toward technological independence, a move that will shape the future of mobile connectivity.

This year, Yole Group’s RF electronics team once again offers a comprehensive collection of market and technology reports as well as reverse engineering and costing analyses. They continue their methodical investigation of this interconnected ecosystem to better understand semiconductor companies’ strategies and assess the remarkable advancements in RF technology.

Engage with Yole Group’s experts anytime to gain deeper insights into the semiconductor memory industry. Ask for a meeting.

Hassan Saleh, PhD, is a Senior Technology and Market Analyst, Radio Frequency, at Yole Group.

Hassan produces technology and market analyses covering the consumer market.

Prior to Yole Group, Hassan worked at X-FAB (France) as manager of RF characterization and modeling, part of the R&D department, where he was responsible for the RF laboratory activities and the production of models of RF semiconductor devices and components. He was involved in the development of RF-SOI, GaN, and BiCMOS SiGe platforms for RF applications.

Hassan holds a master’s degree in micro-technologies and communication systems from INSA Rennes (France) and a PhD in Physics from Aix-Marseille University (France).

This article has been developed in collaboration with Ihor Pershukov, PhD, Technology & Cost Analyst, Radio Frequency at Yole Group.

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Source: www.yolegroup.com