Apple Parting Ways with Qualcomm
Apple is reducing its dependence on Qualcomm by increasing the use of C-series modems. Expected changes and details in the iPhone 18 series are in our news.
Apple is accelerating the process of reducing its dependence on Qualcomm by expanding the use of its own C-series modems. While this transition is expected to become more apparent in the 2026 iPhone series, Qualcomm attributes the process to supply constraints.
Although the current contract between the two companies expires in March 2027, Apple’s switch to its own hardware may affect this timeline. Qualcomm CEO Cristiano Amon says that revenue from Apple will show a more rapid decline from the fourth quarter onwards due to supply constraints.
A New Era and Strategy Change for Qualcomm
The percentage of Qualcomm components to be used in the iPhone 18 series is expected to be significantly below the company’s previous claim of 20 percent. This situation seems to support Apple’s strategy of expanding its modem technology to a wider range of products.
Apple has used its C-series modems in iPhone Air, iPad Pro, iPad Air, iPhone 16e, and iPhone 17e models to date. The inclusion of this technology in more devices in the iPhone 18 series is considered a valuable technological gain for Apple.
Qualcomm, on the other hand, is focusing on artificial intelligence data centers to compensate for the revenue loss resulting from Apple. The company aims to generate $5 billion in revenue from the AI data center market by 2027 and $15 billion by 2029.
Sectoral Changes and Future Expectations
Burdens in the supply chain and increasing component costs are causing Qualcomm to increase prices. This powerful process is seen as an opportunity for Apple to switch to its own modems, and could allow the company to get rid of its contractual obligations sooner than expected.
Although Qualcomm’s AI-focused revenue projections are quite ambitious, market experts are cautious about the risk of a bubble in this area. How a possible contraction in the AI sector will affect the company’s long-term revenue goals remains unclear.
How do you think Apple’s switch to its own modem technology will change the competitive landscape in the smartphone market?
