Apple Inc. is gearing up to launch its own series of cellular modem chips, a move that could significantly alter its relationship with longtime partner Qualcomm Inc. According to reports from Bloomberg News, Apple plans to debut its in-house modem system next spring, starting with the iPhone SE, the company's entry-level smartphone. This initiative is part of a broader strategy to replace Qualcomm's technology by 2027.

The development of Apple's modem has been a long and challenging journey. Initially, Apple aimed to bring the chip to market by 2021, but faced numerous setbacks, including issues with size, heat, and power efficiency. To overcome these challenges, Apple invested billions in testing and engineering facilities worldwide and acquired Intel Corp.'s modem group for $1 billion in 2019.

Apple's new modem, code-named Sinope, will first appear in lower-end products like the iPhone SE and later in a mid-tier iPhone, code-named D23. The modem will not initially support mmWave technology, a high-speed 5G standard, but will rely on the more common Sub-6 standard. Despite these limitations, Apple believes its modem will offer advantages such as better power efficiency and integration with Apple-designed processors.

The rollout of Apple's modem is expected to impact several of its suppliers. Qualcomm, which currently supplies modems for Apple's devices, could see a significant reduction in revenue from Apple. Other suppliers like Qorvo Inc. and Skyworks Solutions Inc. might also be affected as Apple develops its own radio frequency front-end systems.

Apple's modem project is a key focus for its hardware technologies team, led by Senior Vice President Johny Srouji. The company has expanded its office space in San Diego and other locations to support the project, hiring engineers from Qualcomm and other firms to bolster its efforts.

Looking ahead, Apple plans to introduce more advanced versions of its modem, with the second-generation chip, code-named Ganymede, expected to match current Qualcomm modems by 2026. By 2027, Apple aims to surpass Qualcomm with its third modem, Prometheus, which will include enhanced performance and AI features.

This strategic shift underscores Apple's commitment to controlling more of its technology stack, reducing reliance on external suppliers, and potentially setting new standards in mobile connectivity.