Microchips enable us to communicate within the internet using our smart devices. Therefore, this move that Apple is planning to work on might pave the way for future smart glasses and augmented reality, as well as more wearables with their own cellular connections, Mac computers with 5G connectivity, and faster-than-ever downloads and streaming on the company’s flagship iPhones.
Currently, Apple is using mondem-chips made by Qualcomm, who has been the world’s dominant modem-chip maker for decades. By making its own chips, Apple could save a lot on cost. According to a recent cost-of-materials analysis of the new iPhone SE, the first version of the more affordable iPhone model with 5G capability, the chips that allow the phone to connect to cell networks cost as much as or more than the chips that make up the phone’s “brains”—the A15 processor and its attached memory chips.
That’s the polar opposite of what’s been the norm with smartphones and comparable mobile devices for decades: Typically, the device’s core CPU has been more complex and expensive than the components that allow it to interact wirelessly.
Additionally, it will also free Apple from relying on its suppliers as despite their benefits, they have occasionally been a source of friction and problem for Apple. For example, Apple concluded a long-running legal battle with Qualcomm over patent licensing costs in 2019, agreeing to pay at least $4.5 billion and to buy Qualcomm modems for several years.
This is very interesting news and I wonder what do you think about Apple’s plan to move towards producing its own chips? Is it a good or a bad idea?
I think it’s a clever step that Apple is taking to invest in the microchip economy and make their own ones. They should had done it earlier in my opinion as they are gaining a lot of benefits from this. I wonder if major companies like Samsung and Huawei when investing in this sector will follow the same action?