And that still hasn’t changed. Apple’s newly released iPhone 14 models also contains Qualcomm’s X65 modem chip. This was the case last year, and the year before that as well where all iPhone 12 and 13 models were equipped with a Qualcomm modem. But what’s so special this year? Well, the X65 modem chips, apart from the usual 5G connectivity, also offer the n53 band, which is used by satellites from Globalstar. So essentially, one of the biggest Apple features this year, Emergency SOS through a satellite, is powered by a rival’s modem.
Bad Blood Between Apple and Qualcomm
Apple and Qualcomm have dragged each other in court multiple times now. But there was a legal breakthrough in 2019 where both the companies announced, that they had reached an agreement to dismiss all litigation worldwide and settle out of court. This included a one-time payment to Qualcomm, probably the $7 billion Apple withheld in royalty payments. There was also a six-year license agreement between the two companies, including a two-year optional extension. Which means Apple can easily depend on Qualcomm, at-least until till 2025, before it replaces them with their own modems. It’s not an ideal option for Apple, given this gives Qualcomm a lot of pricing power as there aren’t a lot of competitors in this space. Apple has been quietly working on its own modems as well, and in 2019 the company acquired Intel’s modem business entirely for $1 billion. But that still hasn’t translated to anything yet. Although making a modem is hard, and specially making a modem that matches Qualcomm’s flagship X65 chip is power efficiency and performance. – Bloomberg
