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IN BRIEF
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In a constantly evolving technological world, Apple stands out for its bold and often enigmatic choices. The apple company is currently embarking on ambitious projects that require colossal investments, sometimes without promise of immediate return. How to explain such a strategy? What are the motivations behind these substantial financial commitments, when so many other companies prioritize short-term profitability? This article aims to explore why Apple is betting on the future, even when profits seem distant.
Apple and its Long Term Vision
Apple seeks to free itself from its dependence on external components, particularly those provided by Qualcomm. For over a decade, iPhone modems have been made by Qualcomm. These components, complex and high quality, are difficult to replace.
A Massive and Risky Investment
For this ambitious project, Apple injected billion dollars and mobilized thousands of engineers. The objective: to develop internally a cellular modem intended for its devices like the iPhone and Apple Watch. However, according to Mark Gurman, this project faces many obstacles, ranging from performance issues to overheating components.
Technical and Strategic Challenges
According to Johnny Srouji, head of the hardware team at Apple, developing a modem is extremely difficult. Qualcomm modems are not only technologically advanced, but also proven by telephone operators around the world, ensuring their reliability.
The Legal Feud With Qualcomm
In 2018, Apple decided to enter the manufacturing of modems following legal disputes with Qualcomm regarding royalties and patents. In 2019, however, the two companies reached an agreement, including a six-year license and a chipset supply agreement.
Apple’s Commitment
Despite failures and delays, Apple persists. The company hopes that by integrating the modem with a wireless chip that also handles Wi-Fi and Bluetooth, it will be able to improve the reliability and lifespan of the batteries of its devices. Ultimately, Apple even plans to merge this modem with the SoC (System on a Chip) iPhones.
Cost Savings and Innovation
Developing its own modem would allow Apple to achieve savings, also accusing Qualcomm of excessive prices. This strategy could not only reduce costs, but also free up space inside devices for other innovations.
Here is a table comparing the motivations and challenges linked to Apple’s internal modem project:
| Motives | Challenges |
| Independence from Qualcomm | High technical complexity |
| Long-term cost reduction | Performance and overheating |
| Integration with other chips | Proven reliability of Qualcomm modems |
| Battery improvement | Six-year agreement with Qualcomm |
| Optimization of internal space | Massive investments needed |
Here is a list summarizing the reasons and obstacles for Apple’s internal modem project:
- Required technology: Very advanced, difficult to master
- Economy: Reduced costs over time, high initial costs
- Reliability: Proven quality of Qualcomm components
- Integration: Potential merger with SoC
- Disputes: History of conflicts with Qualcomm
FAQs
Q: Why does Apple want to create its own modems?
A: Apple wants to reduce its dependence on Qualcomm and save money in the long term.
Q: What are the major challenges faced by Apple in this project?
A: Apple faces technical challenges such as performance and overheating of internal modems.
Q: What was Qualcomm’s response to Apple’s efforts?
A: Qualcomm and Apple reached a six-year agreement on chipset licensing and supply in 2019.
Q: How could these internal modems improve Apple devices?
A: They could optimize reliability, extend battery life and free up space for other innovations.
Q: What are the costs associated with developing these modems?
A: The project requires billions of dollars, mobilizing thousands of engineers and millions of hours of work.