Apple's Custom 5G Modem Could 'Change the Way iPhone Looks and Works' in the Long Term

Apple is investing billions of dollars into developing an in-house cellular modem, but the project is not expected to yield immediate improvements for users, Bloomberg's Mark Gurman reports.

In last week's "Power On" newsletter, Gurman explained that, unlike the transition to Apple silicon, the company's first custom modem will not offer noticeable benefits for users. Individuals within Apple apparently "acknowledge that customers don't really care who makes the modem in their phone" and "it's hard to tell how big the benefits will be in the near term."

Instead, Apple is looking to play "the long game, hoping its modem will evolve into a more advanced component that could ultimately change the way an iPhone looks and works."

Down the road, there are plans for Apple to fold its modem design into a new wireless chip that handles Wi-Fi and Bluetooth access. That would create a single connectivity component, potentially improving reliability and battery life.

There's also the possibility that Apple could one day combine all of this into the device's main system on a chip, or SoC. That could further cut costs and save space inside the iPhone, allowing for more design choices.

Apple has used modems designed by Qualcomm for over a decade, but moved to design its own following a legal battle over royalties and patents in 2018. Since then, it has faced issues with performance and overheating, and the component's debut has been pushed back until next year at the earliest. Its rollout is expected to take place on a gradual basis, starting with more niche devices and expanding across the lineup over the period of a few years.