Apple’s negotiations with Qualcomm for modem technology almost took a different direction. Initially, Apple considered partnering with Samsung for this crucial component in the iPhone.

However, a Samsung executive, Jung Hyun Ho, reportedly halted the discussions, believing that collaborating with Apple would only benefit a competitor. This move is interesting given that a significant portion of iPhone parts, including displays and DRAM, is sourced from Samsung.

Insider reports have labeled Hyun Ho as one of Samsung’s least effective executives, suggesting that his decision forced Apple to turn solely to Qualcomm for modems. This situation motivated Apple to begin developing its own 5G modem technology, which ultimately led to the acquisition of Intel’s mobile chip business in 2020.

The culmination of these efforts is the Apple C1 modem, which made its debut in the iPhone 16e earlier this year. An additional concern for Samsung was its capacity to meet Apple’s demand for 5G modems within the required timeframe.

Apple typically needs to source over 100 million units for the launch of a new iPhone, which explains their delays in adopting technologies like Always-On Display (AOD), OLED, and 120Hz refresh rates. The relationship between Apple and Qualcomm has been complex over the years.

Although Apple has been a significant customer of Qualcomm, tensions flared in 2019 over a royalty dispute. Apple took issue with Qualcomm’s practice of charging royalties based on the total device price, rather than just the modem.

This was a point of frustration for Apple, as it utilized its chipset in conjunction with Qualcomm’s modem, differing from many Android manufacturers who employed Qualcomm chipsets entirely. Looking ahead, Apple’s current agreement with Qualcomm for 5G modems is set to conclude in 2027.

Analysts predict that around 20% of iPhones in the next cycle will feature Apple’s in-house modem, with that figure expected to rise to 70% soon after, indicating Apple’s aim to move away from Qualcomm altogether.