Apple Plans to Merge In-House Modem With Main Processor [Gurman]

Apple is set to take its in-house modem technology a step further by integrating it directly into its main processors, according to a new report from Mark Gurman. The move, detailed in his latest newsletter to subscribers, would be a significant evolution in Apple's silicon strategy, though it remains years away from realization.

The company recently introduced its first custom modem chip, dubbed the C1, with the iPhone 16e. This component, which replaces a Qualcomm Inc. part, represents over seven years and billions of dollars of investment. Apple's efforts included acquiring a segment of Intel Corp., hiring hundreds of engineers, and establishing new offices worldwide. However, during the iPhone 16e unveiling, the C1 barely registered, only receiving a small mention in Apple's press release and announcement video.

This understated debut differs to Apple's usual approach. The company often showcases its chip advancements with fanfare, putting executives like Johny Srouji front and center to highlight performance gains in its M-series, A-series, and H-series processors. The muted rollout of the C1 has raised eyebrows. Gurman suggests several possible explanations: Apple may be wary of royalty disputes with Qualcomm, concerned about the chip's performance lagging behind Qualcomm's offerings, or cautious about unfavorable comparisons in the hands of YouTubers and reviewers.


The C1 is likely just the beginning. Apple is already testing next-generation modem chips, the C2 and C3, with the C2 expected to debut in higher-end iPhones in 2026. The C3, slated for 2027, aims to surpass Qualcomm's capabilities. But the bigger news lies in Apple's longer-term vision: merging the modem with its main processor.

This integration, which Gurman predicts could happen as early as 2028, promises notable benefits. Combining the modem with the processor provides improved energy efficiency and lower production costs, both critical advantages. By embedding the modem into its SoC—much like it has with graphics and neural engines in its A-series and M-series chips—Apple could further differentiate its devices from competitors. For now, though, the C1's muted rollout signals that the company is pacing itself, refining the technology behind closed doors before fully integrating it into its flagship processors.

More details on Apple's modem strategy may emerge as the C2 and C3 chips roll out over the next few years. Until then, the planned SoC integration remains a pivotal, if distant, step in Apple's silicon evolution. Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for more updates!