Apple's in-house modem solution is a huge challenge, but the rewards are huge if it succeeds

Apple's move to develop its own wireless communication modem could revolutionize the way it produces mobile devices, such as the rumored Apple Glass, but only if it can eventually match or exceed the performance of its current modem supplier, Qualcomm. After reaching a surprise settlement with Qualcomm in 2019 to end a patent infringement legal battle, Apple has been a major customer of the modem maker's products. However, as Apple focuses on developing its own modems, the days of using Qualcomm's communication hardware may be numbered.

The Wall Street Journal provided a profile on Apple's modem work on Saturday, outlining the challenges the company faces in creating a product good enough to replace Qualcomm's version.

The rewards are many, including 5G in items like MacBook Pros and blazing fast speeds for iPhones. For future hardware, augmented reality headsets and smart glasses could benefit from fast speeds, with high bandwidth required but low latency more valuable.

Apple's efforts in the area were bolstered by its acquisition of most of Intel's smartphone modem business and the hiring of about 2,200 engineers, but Apple continues to expand its talent pool in the field.

At Apple's offices in San Diego, Qualcomm's hometown, there are about 140 positions centered around cellular chip development and manufacturing. Meanwhile, a satellite engineering office in Irvine, California, has about 20 similar openings, likely in an attempt to lure Broadcom employees to the company.

The current expectation is that Apple will shift to developing and producing its own modems starting in 2023, with TSMC becoming the iPhone maker's chip foundry. Wayne Lam, senior research director at CCS Insight, told reporters that developing its own modems offers Apple advantages in many ways, including cost savings and reduced reliance on suppliers such as Qualcomm, with which Apple has a strained relationship.

The ability to fine-tune the modem for Apple's intended purposes is also a big benefit, as it could tweak the modem so it works in a specific way for one product but is more efficient in other ways for another project.

As for what the ultimate impact might look like, the report compares it to the impact of Apple Silicon, which involves power-efficient chips that outperform Intel alternatives, and design improvements that could improve connectivity for smaller devices like the Apple Watch.

However, Tantra Analyst founder Prakash Sangam suggested that "in some ways, modems are more complex than processors like the M1," in part because of the complexity of handling the many situations that can affect the signal. This could make it more difficult for Apple to produce and increase relative development time.

“If you invest enough time, resources and money, you can do it,” Sangam said. “But whether they can do it by 2023, I don’t think anyone can say with certainty except Apple.”