Apple Unveils C1: Its First Custom Modem Chip Powering iPhone 16e, Reducing Reliance on Qualcomm

Apple has unveiled its first custom modem chip, C1, marking a significant step toward reducing reliance on Qualcomm. The C1 powers the new iPhone 16e, a $599 model featuring the A18 processor, with plans to expand its use across future Apple devices. Thanks to the C1 subsystem, the iPhone 16e boasts the best battery life among Apple’s 6.1-inch models.

Apple designed the C1 for global compatibility, testing it with 180 carriers in 55 countries. While the chip includes custom GPS and satellite connectivity, it currently lacks mmWave 5G support, an area where Qualcomm maintains an advantage. Apple expects to phase out Qualcomm modems, with Qualcomm’s share projected to drop from 100% to 20% by next year, though a licensing agreement remains in place until 2027. Unlike Qualcomm and MediaTek, Apple’s goal isn’t direct competition but deep integration within its ecosystem. The C1 marks the beginning of a long-term platform, set to evolve and improve across future Apple devices.

Apple Unveils C1: Its First Custom Modem Chip Powering iPhone 16e, Reducing Reliance on Qualcomm

Apple has unveiled its first custom-designed modem chip, the C1, marking a significant step toward reducing its reliance on Qualcomm. The C1 modem powers the newly introduced iPhone 16e, a $599 model that features the same A18 processor as the rest of the iPhone 16 lineup. Apple executives stated that the C1 subsystem—which integrates key components like processors and memory—will be incorporated into more Apple products over time, though no specific timeline was provided.

According to Kaiann Drance, Apple’s VP of iPhone product marketing, the iPhone 16e boasts the best battery life among Apple’s 6.1-inch models, thanks to the efficiency of the C1 system. Additionally, the phone will include Apple’s latest AI-driven features.

Apple’s Shift from Qualcomm

Apple has long depended on Qualcomm for modem chips, which also power competing Android devices. After a legal battle and settlement in 2019, Apple continued sourcing modems from Qualcomm but has now developed its own alternative. The C1 platform is designed to evolve across future Apple devices, reflecting Apple’s commitment to long-term modem technology development.

Global Compatibility & Technical Advancements

Apple’s senior VP of hardware technologies, Johny Srouji, described the C1 subsystem as the company’s most complex technology to date. It features a 4nm baseband modem and a 7nm transceiver and has been rigorously tested across 180 carriers in 55 countries. Unlike Qualcomm’s solutions, Apple’s modem is designed to integrate tightly with its processor, enhancing network responsiveness by prioritizing time-sensitive data.

The C1 chip also includes custom GPS and satellite connectivity, ensuring reliable communication even without mobile networks. However, it does not yet support millimeter-wave (mmWave) 5G, a stronghold of Qualcomm’s modem technology. Apple has not disclosed when its modems will include this feature or how soon Qualcomm chips will be phased out.

Market Impact

Apple’s transition to in-house modem chips is expected to significantly reduce Qualcomm’s role in iPhones. Qualcomm previously stated it anticipates its share of Apple modems to drop from 100% to around 20% by next year, though it retains a technology licensing deal with Apple until 2027. Following the announcement, Qualcomm’s stock rose by about 1%, while Apple’s shares remained relatively unchanged.

Apple emphasizes that its goal is not to compete directly with Qualcomm or MediaTek but to develop custom solutions tailored to its ecosystem. “We are building something truly unique that our customers will benefit from,” Srouji explained, underscoring Apple‘s strategy of deep hardware integration for optimized performance and user experience.