Apple’s entry-level iPhone 16e has a new chip that cost billions

Inside the new entry-level iPhone 16e is Apple’s first in-house cellular chip — a critical component for smartphones that enables cellular connections.
On Wednesday, Apple introduced its first in-house modem chip, called “C1,” which is designed to connect iPhones to wireless data networks, reducing its dependency on Qualcomm chips. This new chip is central to the $599 iPhone 16e, which was also unveiled that day. Apple executives told Reuters that these custom chips will be integrated into more of their products in the future, though they provided no specific timeline for this expansion.
Aaron Tilley for The Wall Street Journal:
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The chip, which Apple dubbed the C1, is a long-awaited next step in Apple’s efforts to make more of its own technology, and especially to wean itself from having to pay billions annually to cellular-chip-maker and rival Qualcomm.
The new iPhone 16e will allow Apple to test out the in-house modem before starting to include it in its primary iPhone models, which typically generate far higher sales and profit margins. The next generation iPhone—which some analysts believe will be the iPhone 17—is set to arrive later this year in the fall.
“This is a test vehicle,” said Edward Snyder, a managing director of Charter Equity Research and a longtime wireless industry expert. “Apple wants to get field data on how well it works before they release it into the iPhone 17.”
Snyder expects that 20% of the devices released with the fall iPhone will include the Apple modem. The remaining devices will have cellular chips provided by Qualcomm, Apple’s current chip vendor. If the Apple modem works well enough, Snyder expects that Apple will be completely off Qualcomm chips in around two years.

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MacDailyNews Take: Hopefully, Apple’s modem passes its field testing with flying colors! (Thank you for your service, iPhone 16e guinea pigs; we expect your experience will be more than fine!)
Eventually, the Qualcomm extortionist will pay for its myriad sins. – MacDailyNews, July 23, 2019

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