Apple Unveils First Custom Modem Chip
On February 19, 2025, Apple introduced its first custom-designed modem chip, marking a significant milestone in the company's efforts to reduce its dependence on Qualcomm's chips. The new modem chip will enable iPhones to connect to wireless data networks and will be central to the newly launched iPhone 16e, which is priced at $599. Apple executives revealed that the modem chips will gradually roll out across all their products over the next few years, though a specific timeline has not been disclosed.
The new chips are part of what Apple refers to as the C1 subsystem, a new set of components designed to enhance the performance of its devices. Kaiann Drance, Apple's Vice President of iPhone Product Marketing, emphasized that the iPhone 16e will feature the same A18 processor as the other models in the iPhone 16 series. Thanks to the integration of the C1 system, the iPhone 16e boasts the longest battery life among all 6.1-inch smartphones. The device will also feature Apple's latest artificial intelligence capabilities.
Modem chips are particularly challenging to develop, as they must be compatible with hundreds of carriers across dozens of countries. For years, Apple has sourced its modem chips from Qualcomm, the world's largest chip supplier, whose technology also supports Android devices and Windows laptops. After a prolonged legal battle with Qualcomm, Apple reached a settlement in 2019 and signed a new supply agreement. However, with the development of its own modem technology, Apple now aims to build the foundation for its modem platform in the coming years.
Johny Srouji, Apple's Senior Vice President of Hardware Technologies, spoke about the C1 subsystem during an interview at Apple's Silicon Lab in Sunnyvale, California. He called the C1 system “the most complex technology Apple has ever created,” with the baseband modem built using cutting-edge 4nm chip technology and transceivers utilizing 7nm technology. To ensure compatibility, the chips are being tested across 180 carriers in 55 countries, ensuring they will perform seamlessly wherever iPhones are sold.
“We've built a platform for generations to come,” Srouji said. “The C1 is just the beginning, and we will continuously improve this technology with every generation, making it a platform that will truly differentiate our products.”
One of Apple's key strategies for the C1 system is its close integration with the processor chip. Arun Mathias, Apple's Vice President of Wireless Software, explained that if an iPhone encounters network congestion, the processor can communicate with the modem, prioritizing data that is time-sensitive to enhance responsiveness and user experience.
Additionally, the C1 chip includes a custom GPS system and satellite connectivity features, offering users access to services even when away from mobile data networks. However, it does not support some features, such as the ability to connect to millimeter-wave 5G networks, a technology where Qualcomm currently holds a strong position.
While Apple executives declined to provide specific details on when the chip will adopt millimeter-wave technology or how quickly the company plans to phase out Qualcomm's chips, Qualcomm executives have projected that their share of the iPhone modem market will drop from 100% to around 20% by next year. Qualcomm's technology licensing agreement with Apple remains in effect until at least 2027.
Srouji emphasized that Apple's goal is not to match competitors' chip specifications but to design chips that meet the unique needs of Apple products. “We're not aiming to compete with commercial suppliers like Qualcomm or MediaTek,” Srouji said. “I believe we are creating something truly distinctive, and customers will benefit from it.”
