Apple Suppliers Are Reportedly Engaged In Competition With One Another, Wanting To Secure In-House 5G Modem Orders

How has the competition for Apple’s 5G modem orders impacted the global tech industry?

The rapid developments in 5G technology have changed the mobile landscape. Companies are racing to execute their 5G plans, with Apple suppliers reportedly at odds with one another as they compete to secure in-house 5G modem orders.

The highly sought after 5G modem orders had been previously granted exclusively to Qualcomm by Apple, who produces the 5Gx-R modem chip for iPhones. Although both companies have recently come to a settlement and a six-year licensing agreement, Apple has the opportunity to source their 5G modems from multiple suppliers, making them strong competition for Qualcomm.

This has resulted in a three-way bidding war between Qualcomm, MediaTek, and Samsung. All three have used various strategies such as lowering prices and diversifying their strategy to make their offerings competitive. Qualcomm is offering discounts to keep their competitive edge, while MediaTek has promised to provide a low-cost 5G connectivity solution for Apple. Samsung, however, is taking a slightly different approach. They are currently in talks with Apple to use their own Exynos 5G modem chips, which will not only provide power savings, but also high-speed data rates and download speeds up to 6 gigabits per second.

Competition between suppliers is also fierce when it comes to the battery life of 5G modems. Currently, Qualcomm is the most popular choice due to its power efficiency and long-lasting battery life. MediaTek and Samsung are also offering chipset designs that can deliver equivalent or better battery life, compared to Qualcomm’s 8-hour lifespan.

Apple’s expected shift towards 5G in their upcoming iPhone 12 lineup is the main driving force behind this competition. With the cost of 5G components decreasing rapidly due to increased supply, Apple could be looking to source their modems from various suppliers, including several of the Chinese companies such as HiSilicon, Unisoc, and Spreadtrum.

These advances in competitive strategies have caused a struggle between the various suppliers, with each trying to outdo the others. With Apple seemingly in the driver’s seat, one could say that the competitive 5G market is set for a dramatic change in the near future.