Apple’s transition to in-house 5G modems is happening faster than expected, marking a significant milestone in the company’s push to control more of its hardware. Although Apple has relied on Qualcomm’s 5G modems for years, new reports suggest the company will begin phasing them out by 2025. This shift comes after years of development following Apple’s 2019 acquisition of Intel’s 5G modem division for $1 billion.
Initially, Apple faced challenges, leading to speculation that it had abandoned its modem plans. However, recent reports from renowned analyst Ming-Chi Kuo reveal that Apple is on track to launch its modems sooner than anticipated. Kuo’s latest supply chain analysis projects that Apple’s in-house 5G chip shipments will reach 35-40 million units in 2025, growing to 90-110 million in 2026 and 160-180 million by 2027.
In 2025, Apple’s custom 5G modems will debut in two iPhone models: the iPhone SE 4 and the iPhone 17 Slim. The iPhone SE 4 is set to launch in early 2025, while the iPhone 17 Slim will be revealed at Apple’s September event later that year. Despite Qualcomm holding a license to supply Apple with 5G modems until at least March 2027, these developments indicate that Apple is accelerating its plans to reduce reliance on Qualcomm.
Apple’s motivation goes beyond cost-cutting. According to Mark Gurman, thousands of engineers have worked millions of hours on Apple’s in-house 5G modem project. While the modem itself is unlikely to improve the user experience, the move aligns with Apple’s goal of controlling critical iPhone components. Gurman notes that Apple employees admit customers don’t particularly care which modem is used, but the move allows Apple to market its technology and position itself as producing key components in-house.
Furthermore, as Gurman highlights, Qualcomm’s monopoly on Apple’s modem supply has enabled the chipmaker to charge premium prices, and Apple has long felt that it overpays for these chips. Developing its own modem not only saves money but also paves the way for future innovations. Apple aims to integrate the 5G modem with the iPhone’s SoC, which would free up internal space and improve energy efficiency—something that Qualcomm’s standalone modems do not currently allow.
Although the initial rollout of Apple’s 5G modems will be limited, with just two models in 2025, the company is expected to expand the use of its chips rapidly. By 2026 and 2027, many more iPhones—and potentially even iPads and Macs—could feature Apple’s custom modems, drastically reducing Qualcomm’s share of Apple’s business. However, this shift won’t happen overnight, as performance issues and overheating concerns are still being addressed in Apple’s modem development.
