Apple Inc. AAPL is reportedly testing its second-generation C2 modem for upcoming iPhone models.
What Happened: A private X, formerly Twitter, account with a track record of accurate Apple leaks claims that the company is already testing the C2 modem, internally identified as "C4020," reported MacRumors.
Apple’s next-generation modem is expected to deliver improved 5G connectivity with enhanced speed and reliability while also being more energy efficient.
The latest rumor signals a major step in Apple's effort to move away from Qualcomm Inc.'s QCOM chips and improve in-house wireless technology. Earlier reports suggested that Apple’s first modem, C1, might be slower than Qualcomm’s Snapdragon X75 modem.
Why It Matters: The current C1 modem in the iPhone 16e is already noted for its power efficiency, contributing to the longest battery life among 6.1-inch iPhones.
Apple's chipmaking chief, Johny Srouji, mentioned that the C1 modem is just the beginning, with the C2 modem marking the next phase.
Bloomberg's columnist Mark Gurman previously highlighted the significance of Apple's first in-house modem, calling it a "monumental technical achievement" after a seven-year, multi-billion-dollar effort.
However, Gurman noted that Apple gave it minimal attention in its official announcements, which he believes was intentional.
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Analyst Ming-Chi Kuo also weighed in, stating that all iPhone 17 models set to launch in late 2025 will feature Apple's own Wi-Fi chips, a move aimed at reducing reliance on Broadcom Inc. AVGO. He also said that only the slim iPhone 17 model is expected to adopt Apple's C1 modem.
Meanwhile, Flighty CEO Ryan Jones has questioned whether the C1 modem in the iPhone 16e can match expectations.
Price Action: Apple’s stock closed at $245.83 on Thursday, rising 0.39% for the day. However, in after-hours trading, it edged down 0.094% to $245.60, according to Benzinga Pro data.
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