Apple's self-developed baseband is not smooth

Qualcomm will continue to provide baseband chips for "the vast majority" of iPhones in 2023. Previously, Qualcomm had expected this business to be taken away by Apple's own baseband chips.

Qualcomm said in comments Wednesday that it had planned to supply only about 20 percent of 5G baseband chips for new iPhones in 2023, but now expects to maintain current supply levels. The statement confirmed that Apple's models next year will not use its own self-developed baseband design.

Since reaching a settlement with Qualcomm in 2019 and agreeing to use the company's baseband chips in iPhones for the foreseeable future, Apple has been working on building its own baseband chips for mobile phones. Apple's head of chip development told employees in 2020 that development of the component was underway. But reports earlier this year said Apple's efforts were hampered by overheating prototype versions of the baseband, and the company won't start replacing its in-house baseband chips until 2024 at the earliest.

Apple has yet to comment. Still, the positive news offered little comfort to Qualcomm investors. Qualcomm, which is grappling with a general slump in smartphone demand, issued a much-lower-than-expected outlook, sending shares down as much as 8.4% in after-hours trading.

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