SAMSUNG'S REFUSAL SPURS APPLE TO DEVELOP OWN 5G MODEM

Samsung's decision not to supply 5G modems to Apple led the iPhone maker to develop its own modem, the Apple C1, which debuted in the iPhone 16e. Negotiations between Apple and Samsung faltered due to supply constraints and internal objections at Samsung, prompting Apple to pursue an independent solution.

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Apple approached Samsung in 2019 to secure 5G modems for its iPhones, aiming to diversify from its reliance on Qualcomm. Samsung, a key supplier of iPhone components like displays and DRAM, was unable to meet Apple's demand for approximately 100 million modems needed for an iPhone launch. Additionally, Samsung executive Hyun Ho opposed the deal, citing concerns about aiding a competitor. This refusal, reported by industry sources, pushed Apple to accelerate its modem development efforts.

APPLE'S MODEM DEVELOPMENT

Apple's response was to acquire Intel's smartphone modem business in 2020 for $1 billion, gaining 2,200 engineers and intellectual property to bolster its in-house capabilities. The acquisition followed a settlement with Qualcomm in 2019, resolving a royalty dispute but reinforcing Apple's desire to reduce dependence on Qualcomm's modems. The C1 modem, introduced in the iPhone 16e, marks Apple's first proprietary 5G modem, designed to support high-speed mobile connectivity.