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WSJ exposes ‘spectacular failure’ by thousands of Apple workers

by Norman Scott

Apple’s Attempt to Develop Its Own Modem Chip for iPhones Ends in Failure

In a surprising turn of events, tech giant Apple has reportedly failed in its attempt to develop its own wireless carrier connection chip, or modem chip, for its flagship iPhone products. According to a recent article in the Wall Street Journal, the company’s massive engineering project fell short due to issues with speed and size.

For years, Apple has focused on designing its iPhone technology in-house, striving to make its devices lighter, faster, and more efficient. Developing its own modem chip was seen as a key step towards achieving this goal. Cupertino-based Apple poured billions of dollars into the project and hired thousands of engineers to create the chip. However, tests conducted last year revealed that the chip was far too slow and too large to be used in the iPhone 15, which was set to be unveiled this month.

Consequently, Apple has decided to continue relying on Qualcomm, a San Diego-based chipmaker that dominates the modem chip market. Qualcomm recently announced that it will supply Apple with its modem systems through 2026, bringing in billions of dollars in revenue for the company each year.

However, the relationship between Apple and Qualcomm has been far from amicable. The two companies have had a contentious history, engaging in legal battles over patents and engaging in public disputes. Apple has also taken issue with Qualcomm’s pricing model, which charges for both patent licenses and the physical chip itself.

Apple’s decision to develop its own modem chip was motivated by a desire to reduce its dependence on Qualcomm and increase profits by eliminating the need for external suppliers. However, the Journal’s report suggests that Apple may have underestimated the challenges associated with creating a modem chip. The project was plagued by unrealistic goals, missed deadlines, conflicting priorities, and inexperienced leadership, leading to its ultimate failure.

Despite this setback, Apple is not giving up on the idea of developing its own modem chip. The company, known for its deep pockets, will continue working on the project to eventually bring it to fruition. However, it remains to be seen whether Apple can overcome the obstacles that have hindered its progress thus far.

Apple’s failure to develop its own modem chip highlights the complexities and difficulties inherent in this aspect of smartphone technology. Building a modem chip that works seamlessly with different cellular providers and maintains reliable data and call services is no small feat. As former Qualcomm executive Serge Willenegger stated, “Cellular is a monster,” illustrating the challenges that Apple, and potentially other companies seeking to do the same, face in this field.

Although it is undoubtedly a setback for Apple, the company’s decision to continue pursuing its own modem chip demonstrates its commitment to innovation and control over its products. As the smartphone industry continues to evolve, it will be interesting to see how Apple navigates this hurdle and if it can successfully develop a modem chip that meets its high standards.

In the meantime, Apple will rely on Qualcomm to supply the modem systems for its iPhones, ensuring that the company can continue meeting customer demand for its popular devices. As Apple and Qualcomm move forward with their partnership, it remains to be seen whether they can put aside their differences and work towards a more harmonious relationship in the future.

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