At the launch of the iPhone 16e, one thing that stood out was Apple’s decision to debut its first in-house cellular modem, the C1, which is seen as a calculated move, signaling the company’s long-term strategy to reduce reliance on third-party suppliers. We’ve already seen that with Intel.
Apple has relied on Qualcomm modems for its flagship smartphones and will continue to do so for the foreseeable future, but the C1 modem could change that in the years to come. While the C1 modem is still not on par with Qualcomm’s latest offerings, Apple has time—until at least 2027—to perfect it. Apple has a technology licensing agreement with Qualcomm to use its 5G modem chips till 2027, and if you think this contract will be renewed, think again.
The iPhone 16e is more than just a budget-friendly entry into the iOS ecosystem. It’s a testbed for Apple’s modem ambitions. This way, Apple won’t have to risk compromising the flagship experience.
By introducing the C1 in a non-Pro model, Apple is making a subtle yet significant shift: proving it can build its own connectivity tech while still relying on Qualcomm for premium devices. A well-calculated strategic move.
This approach mirrors Apple’s silicon strategy—starting small before phasing out Intel. And just like Apple Silicon replaced Intel chips, the C-series modems will eventually take over iPhones, iPads, and possibly even Macs. That’s the natural transition.
But Apple isn’t rushing this. If you look closely, the C1 modem isn’t perfect as it lacks mmWave 5G support, an area where Qualcomm remains the industry leader. But to think of it, Apple isn’t worried about winning the modem race overnight. It’s playing the long game—building its own ecosystem, fine-tuning performance, and ensuring that, when the switch finally happens, no one will look back.
Who’s next after Qualcomm?
If you think Apple is stopping at Qualcomm, think again. Samsung could be next in line.
If Apple is willing to part ways with Qualcomm, its reliance on Samsung for display technology could also be on the chopping block. But that’s a long shot, even for Apple at this current stage.
For years, Samsung Display has been Apple’s go-to supplier for OLED panels, especially for the ProMotion displays on high-end iPhones. But Apple has already started diversifying—bringing in BOE and LG Display, and working on its own microLED technology.
However, breaking free from Samsung is far trickier than phasing out Qualcomm. Apple’s control over silicon and software allows for a gradual modem transition, but display technology is a different beast altogether. Samsung is still leagues ahead of its competitors in OLED panel quality and production yields.
While Apple is experimenting with microLED, scaling that tech for iPhones is years away. Even if that’s on the agenda, it doesn’t appear to be on the priority list any time soon.
Look at the bigger picture
The introduction of the C1 modem is about more than just modems—it’s about control. Apple has spent years chipping away at its dependence on external suppliers, ensuring it owns every critical piece of its hardware. The modem is the next frontier. Displays could follow. And in the long run, Apple’s goal is clear: complete autonomy over its supply chain.
For now, the iPhone 16e and its C1 modem might seem like a small step. But make no mistake—it’s a glimpse into Apple’s future. And in that future, companies like Qualcomm and Samsung will have far less influence over Cupertino’s plans.
