Surprising Turn: Apple Ditches 5G Modem Development, Splurges Billions to Acquire Intel's 5G Segment?

According to a recent post on South Korea's Naver platform, sources close to Apple's supply chain reveal that the Cupertino-based company is in the process of restructuring its investments in its modem development department and is preparing to completely abandon the project. Similar reports from sources within Japan's supply chain have been confirmed by leaker @Tech_Reve, who has a reliable track record of Apple leaks.

It's too early to say whether the latest reports are accurate or not, but according to sources cited by The Wall Street Journal in September, Apple's efforts to develop modem chips have been hindered by major issues related to unrealistic goals, inadequate understanding of associated challenges, and unusable prototypes.

This company's in-house modem design initiative has led to the recruitment of thousands of engineers. As a result, Apple acquired the majority of Intel's modem business in 2019. And as they filled their ranks with project personnel including engineers from Intel and others hired from Qualcomm, company executives set a goal of having modem chips ready by fall 2023.

However, Bloomberg's journalist Mark Gurman reported earlier this month that Apple continues to encounter hurdles in its 5G modem development efforts. The launch of the modem chip is said to have been postponed until late 2025 or early 2026, but Apple is still reportedly planning to introduce it on a budget-friendly SE version. Let's stay tuned for more updates!