Apple reveals first custom modem chip, shifting away from Qualcomm
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Apple has unveiled its first custom-designed modem chip, reducing its dependence on Qualcomm for wireless data network connectivity in iPhones. This strategic move could impact Qualcomm's market position as Apple shifts away from using its chips.
February 19, 2025 | 4:30 pm
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Qualcomm may face challenges as Apple, a major client, shifts to its own modem chips, potentially affecting Qualcomm's revenue and market share.
Apple's move to use its own modem chips reduces its dependency on Qualcomm, which could lead to a decrease in Qualcomm's sales and market influence.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Apple's introduction of a custom modem chip marks a significant step in reducing its reliance on Qualcomm, potentially enhancing its competitive edge and cost efficiency.
By developing its own modem chip, Apple can reduce costs and increase control over its supply chain, potentially improving margins and product differentiation.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 80