Apple’s entry-level iPhone 16e has a new chip that cost billions
On Wednesday, Apple unveiled its first in-house modem chip, aptly named “C1,” designed to connect iPhones to wireless data networks, thereby reducing its reliance on Qualcomm chips. This new chip forms the core of the $599 iPhone 16e, which was also unveiled that day. Apple executives hinted at the potential integration of these custom chips into more of their products in the future, though they didn’t provide a specific timeline for this expansion.
Thank you for reading this post, don't forget to subscribe!
The C1 chip, dubbed by Apple, represents a significant milestone in their efforts to bolster their own technology, particularly in weaning themselves from the billions annually they pay to cellular chip maker and rival Qualcomm.
The new iPhone 16e serves as a testbed for the in-house modem before its inclusion in Apple’s primary iPhone models, which typically yield higher sales and profit margins. The next-generation iPhone, which some analysts believe will be the iPhone 17, is expected to launch later this year in the fall.
Edward Snyder, a managing director of Charter Equity Research and a seasoned wireless industry expert, characterized the new iPhone 16e as a “test vehicle.” Snyder anticipates that 20% of the devices released with the fall iPhone will feature the Apple modem, while the remaining devices will rely on cellular chips provided by Qualcomm, Apple’s current chip vendor. If the Apple modem performs exceptionally well, Snyder predicts that Apple will completely phase out Qualcomm chips within approximately two years.
About Post Author
Advertisement
Discover more from CompuScoop.com
Subscribe to get the latest posts sent to your email.
