Apple iPhone SE 4 to Debut Custom 5G Modem

Reports indicate that Apple's upcoming budget-friendly model will be part of its newest product lineup in three years. The iPhone SE 4, expected to enter mass production this December, is set to become the first iPhone equipped with Apple's in-house 5G modem. Although Apple's 5G supply agreement with Qualcomm extends until 2027, a research report from Jeff Pu, an analyst at Haitong International Securities, suggests that the iPhone SE 4 will be the initial device featuring this custom 5G chip. This marks Apple's first venture into creating a custom non-SoC solution.

Industry experts highlight that the iPhone SE 4 will be the first device to incorporate Apple’s proprietary 5G modem, while Broadcom will continue to supply Wi-Fi 7 chips. Starting from the latter half of 2025, Apple's 5G and Wi-Fi chips are anticipated to be gradually integrated into new products. However, these are separate chips manufactured with different TSMC processes, so early rollout timelines may vary based on their production schedules.

Previously, estimates from TD Cowen revealed that Qualcomm's 5G chips cost around $28 per unit. With projected shipments of 90 million units of the iPhone 16 series in 2024, Qualcomm could potentially generate $2.52 billion in revenue. By introducing its custom 5G modem, Apple aims to reduce partner payments and cut component costs. For the iPhone SE 4, controlling production costs is essential, and the most effective way to achieve this is by excluding Qualcomm's 5G modem from its hardware components.

Analysts have also noted that Apple plans to implement its own Wi-Fi chips in new devices by the second half of 2025, starting with models such as the iPhone 17, thereby reducing reliance on Broadcom. Broadcom currently supplies Apple with over 300 million Wi-Fi+BT chips annually. However, Apple is poised to quickly shift away from external providers, using its proprietary Wi-Fi chips manufactured with TSMC's 7nm process and supporting the latest Wi-Fi 7 standard. Apple intends to transition almost all its devices to in-house Wi-Fi chips within the next three years.