Apple Nailed Custom Processors But Tripped Hard On Its Own Modem Chips For iPhone 15

Apple Inc.’s (NASDAQ:AAPL) iPhone 15 release has garnered attention, but not for the reasons the tech giant had reportedly hoped, as it fell short of delivering its proprietary silicon chip as initially planned, shedding light on the internal challenges that derailed Cupertino’s efforts.

What Happened: Apple’s unconfirmed grand plan to develop and integrate its proprietary silicon chip into the iPhone 15 hit unexpected roadblocks. 

The initial directive that reportedly came from CEO Tim Cook to design a modem chip and aimed at reducing reliance on Qualcomm Inc. (NASDAQ:QCOM) led to massive engineer hiring. 

However, the chip’s development suffered from critical issues, much of it was internal, reported The Wall Street Journal, citing former company engineers and executives familiar with the development. 

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Technical Challenges And Poor Communication: Tests revealed the chip was too slow and prone to overheating. 

“Just because Apple builds the best silicon on the planet, it’s ridiculous to think that they could also build a modem,” said former Apple wireless director Jaydeep Ranade.

Moreover, its substantial circuit board would occupy half an iPhone, rendering it unusable.

Siloed Teams And Unrealistic Goals: Teams working on the modem chip were scattered across the U.S. and abroad without a unified global leader. Poor communication and management discord hindered progress. 

Cupertino’s Motivation: Apple aimed to replicate the success of its microprocessor chips, known for boosting performance and profit margins. Additionally, it intended to sever ties with Qualcomm following a legal dispute over patent royalties.

The Reality Check: Designing a modem chip was far more complex than Apple anticipated. Unlike microprocessors, modem chips must conform to stringent global connectivity standards, supporting a wide range of wireless networks. 

“These delays indicate Apple didn’t anticipate the complexity of the effort,” said Serge Willenegger, a former Qualcomm executive, adding, “Cellular is a monster.”

Why It’s Important: The report noted that the chip was found to lag three years behind Qualcomm’s best offering, jeopardizing iPhone wireless speeds. 

As a result of these challenges, Apple postponed its proprietary chip rollout to 2024, opting to continue purchasing modem chips from Qualcomm, but that plan may also not materialize. 

Having said that, the Cupertino, California-based tech giant apparently remains committed to the project, with plans extending to at least late 2025.

Image – Apple

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