Qualcomm’s Challenges as Apple and Google Explore Alternatives for 5G Modems
Qualcomm, which is synonymous with mobile modem technology, is now riding on a swelling wave of competition alongside some major tech franchises such as Apple and Google, which are now considering incremental moves away from Qualcomm’s 5G for mobile communications modems. Google has now aligned with MediaTek for the Pixel 10, with an upcoming integration of the T900 modem instead of Qualcomm or Samsung. Meanwhile, Apple prepares to follow up with what is reported to be a relevant move phasing out the Snapdragon modem for the iPhone SE 4 and possibly for several of its iPads as well. These movements are indeed heavy shuffles in the mobile markets and present critical challenges for Qualcomm in serving its lion’s market.
Apple’s Efforts to Develop Custom 5G Modems
Apple has long been working on their own 5G modems for several years due to the exorbitant licensing fees paid to Qualcomm. In 2019, Apple procured the modem business of Intel for $1 billion to hasten the process of building customized modems for them. Although Apple’s 5G modem is supposed to come in some year shortly, it is unlikely to be compared with the top-end modems of Qualcomm. The reports also suggest that the very first 5G modem from Apple may not come with mmWave support which is very much needed for high speeds of data transfer on the major US networks such as Verizon.
Though possibly lacking early features, it is all an effort to make the self-modem complement a larger picture well by integrating 5G into all of its product portfolio and into devices like MacBook and wearables, as with the Vision Pro. Having its modems will enable Apple to lessen the chances of being caught up with third-party suppliers and take over more control of the hardware-software integration. This could bring even greater savings with time in tighter integration between its modem, CPU, GPU, and NPU.
Google’s Shift to MediaTek
Apart from Qualcomm, MediaTek is hailed as Google’s next alternative for the Pixel 10 modem. Following its unclear relationship with Samsung’s Exynos modems, Google turns without hesitation to MediaTek’s T900 as yet another premium option. The cost-effectiveness that MediaTek refers to gives credence to the claim, given that its existing T800 modem will suffice for power efficiency and dual sub-6GHz and mmWave band provision, which makes it good for any market worldwide. The T900, likely a more advanced version of the T800, would likely improve performance and make it even more attractive for Google’s Pixel lineup.
Most importantly as to why Google is exploring MediaTek is because they are also cheaper. Leakages into the reports show that MediaTek’s kinds of solutions are much cheaper than Qualcomm’s; this is aligned with Google’s intentions for the next generations of its Tensor products. What that means is that Google could choose to go with MediaTek, and it would have its costs come down and still compete effectively performance-wise with its flagship smartphones.
The Future of Qualcomm in the 5G Market
Apple’s motion to create its own 5G modems along with Google’s shift toward MediaTek is a drastic recourse from the use of Qualcomm products in the mobile market. However, the company is by no means dethroned. Qualcomm’s patent portfolio coupled with licensing terms rounds out a very powerful 4G and 5G presence. It also continues to diversify the already diversified tools it has beyond mobile modems and continues developments on more advanced automotive, augmented reality, and other emerging technologies.
Even if Qualcomm’s business model faces mounting competition for eye share in the smartphone space, there are prospects for use through patent licensing revenues and entering new markets to maintain its position in the rank of the most dominant technology companies. Future growth of the company, however, will depend on how it adapts to a changing technological landscape that includes markets like automotive and extended reality (XR) where Qualcomm’s technology may have an important role.
In summary, the dropping out of both Apple and Google marks a transition to a new space in the 5G modem market and continued expansion. It does, however, also indicate that their diverse patent agreements and portfolios may still allow Qualcomm to play a leading role in mobile and beyond.
