Apple’s new iPhone C1 modem chip, the company’s first in-house cellular processor, is positioned to dramatically reduce Qualcomm’s modem presence in Apple devices — potentially to roughly 20% of its current share by 2026. The C1 pairs a 4-nanometre baseband with a 7-nanometre transceiver design and represents a major step in Apple’s vertical integration of critical smartphone components.
Introduced in the $599 iPhone 16e, the C1 modem subsystem is Apple’s most significant modem-related development since its acquisition of Intel’s smartphone modem business in 2019. The custom modem aligns with Apple’s long-term strategy of bringing more component design in-house, following its successful transition to custom ARM-based processors for iPhone and Mac products.
“We build a platform for generations. C1 is the start, and we’re going to keep improving that technology each generation so that it becomes a platform for us that will be used to differentiate this technology for our products,” said Johny Srouji, Apple’s senior vice president of hardware technologies, describing the C1 as the foundation for future modem innovations.
Technical specifications
Apple reports that the C1 modem has been tested across 180 carriers in 55 countries to ensure broad compatibility. The chip integrates custom GPS functionality and satellite connectivity features, enhancing location services and emergency communications. However, the initial C1 lacks millimetre-wave 5G support — an area where Qualcomm still holds deep expertise.
Tighter integration between the C1 modem and Apple’s A-series processors is designed to improve network performance and efficiency. Arun Mathias, Apple’s vice president for wireless software, explained that this integration enables the system to prioritise time-sensitive data transfers during network congestion, which can improve connectivity and responsiveness during peak usage.
According to Kaiann Drance, vice president of iPhone product marketing, the iPhone 16e achieves better battery life than other 6.1-inch iPhone models, a gain attributed in part to the C1 modem’s efficiency. The 16e shares the A18 processor used across the iPhone 16 family and supports Apple’s latest on-device AI capabilities, which currently leverage technology provided by OpenAI.
Market impact
Although Qualcomm’s share of Apple modem use is expected to decline, the company still maintains a technology licensing agreement with Apple that runs at least through 2027. Following Apple’s C1 announcement, Qualcomm’s stock rose modestly while Apple’s shares remained stable, reflecting investor attention to the shifting supplier landscape rather than immediate market disruption.
Developing a modem at scale is a complex technical undertaking — only a few companies such as Samsung, MediaTek, and Huawei have successfully produced comparable integrated modem solutions. Modem development requires maintaining compatibility with hundreds of global carriers and meeting diverse regional network standards and certifications, which increases the engineering and validation effort substantially.
Industry evolution
Apple’s move toward an in-house modem follows a complicated history with Qualcomm, including a legal dispute that was resolved in 2019 after Intel was unable to deliver a viable modem alternative. Despite subsequent supply agreements with Qualcomm, Apple persisted with internal modem development and made significant investments in research and engineering to build its own capabilities.
“We’re not the merchant vendor to compete with Qualcomm and MediaTek and others. I believe we’re building something truly differentiating that our customers will benefit from,” Johny Srouji said, underlining Apple’s objective to craft technology tailored to its devices rather than merely matching competitor specifications.
Future implications
Apple executives have not provided a firm timetable for when future C1 generations will add millimetre-wave 5G or when Qualcomm components might be fully phased out. Nevertheless, Apple’s sustained investment indicates a long-term commitment to developing and expanding its in-house modem platform, with future iterations likely to broaden capabilities and carrier support.
(Photo by Apple)
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