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Following the news that Apple has launched iPhone 16e phone with its first cellular modem C1; Anisha Bhatia, Senior Technology Analyst at GlobalData, a leading data and analytics company, offers her view.
“The launch of iPhone 16e with cellular modem ‘C1’ culminates years of research and more than $1 billion in acquisitions. The proprietary 5G modem will reduce Apple’s reliance on Qualcomm and integrate cellular connectivity within its larger device ecosystem. The move will lead to improved device performance, design innovations, and cost savings.
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“The $599 iPhone 16e serves as a testbed for Apple’s modem, allowing the company to evaluate its performance at scale before potentially integrating it into the higher-end models. This move will enable Apple to gather extensive data and user feedback, ensuring that any potential issues are addressed before a wider rollout. But Qualcomm’s modems are the current gold standard in the industry, and Apple’s transition to in-house modem technology will be gradual.
“Qualcomm modems are expected to remain in use in select Apple devices until at least 2027. As Qualcomm diversifies its focus to the automotive segment, PCs and IoT, the importance of the smartphone modem market to the company may wane, allowing Apple to carve out a new niche for itself.
“Apple’s transition to self-designed modems is a calculated long-term play that may not immediately alter the user experience but could result in significant future benefits in terms of better processing efficiency, optimized battery design and tighter vertical integration of all Apple components.”
