For years, Apple has dreamed of the day it would achieve complete independence from external chipmakers and rely entirely on its engineers in Cupertino. Indeed, last year the company began rolling out its own 5G modem, and then a few months later surprised us by introducing an integrated Wi-Fi and Bluetooth chip in the iPhone 17 series. However, despite these impressive achievements, it seems that completely breaking free from giants like Qualcomm and Broadcom isn't as easy as some might imagine, and Apple still needs them—at least for now.
The N1 wireless chip: the hidden hero of the iPhone 17
While most of the focus was on Apple's C-series 5G modem, the company's engineers were quietly working on another equally important project: a Wi-Fi and Bluetooth chip designed to replace the Broadcom chips that Apple had long relied on in its wireless devices. The biggest surprise came when the iPhone 17, iPhone 17 Pro, and iPhone 17 Pro Max retained the Qualcomm modem but dropped Broadcom in favor of Apple's new N1 wireless chip.
The N1 wireless chip has proven to be the “hidden hero” in the new devices; it was designed to integrate directly with the A19 and A19 Pro processors to reduce power consumption by offloading data processing to the more powerful and efficient processing chips. The result is faster, more reliable connectivity, especially when streaming audio to AirPods Pro, and incredibly responsive Bluetooth proximity features, not to mention the robust performance of Wi-Fi 7.
Although this chip is common in most modern iPhones, iPads, and MacBooks, some budget models like the MacBook Neo have adopted a MediaTek wireless chip instead. Analysts attribute this to Apple's desire to reduce production costs in order to offer a device at an affordable price, proving that completely dispensing with external partners involves complex financial calculations.
Five more years with Broadcom: The silent billions deal
Some optimists believed that the arrival of the N1 chip meant Broadcom's complete exclusion from Apple's supply chain, but the shocking financial reality proved otherwise. Reports revealed that Broadcom signed a new five-year supply agreement with Apple extending until 2031, a highly significant deal that alone represents approximately 20% of Broadcom's annual revenue.
This extension doesn't mean Apple is abandoning the development of its own wireless processors; rather, it reflects the reality that wireless communication technologies don't rely solely on the main chip. The signed agreement includes the development of "5G radio frequency components," which encompass antenna arrays and auxiliary chips. For Apple, it's strategically wise to control the core components (the main modem and the wireless chip) and leave the manufacturing of the auxiliary hardware to specialized companies, thus avoiding unnecessary engineering burdens.
Qualcomm and mmWave networks: The hurdle for US 5G
On the other hand, Apple's partnership with Qualcomm remains strong for both technical and geographical reasons. The key lies in the ultra-fast 5G networks using mmWave (millimeter wave) broadband. Recent leaks from Tata Electronics factories suggest that the iPhone 18 Pro models intended for the US market may continue to rely on Qualcomm modems instead of a complete switch to Apple's upcoming C2 modem.
The reason for this is that mmWave networks are primarily used within the United States (by carriers like Verizon) to provide blazing-fast speeds in congested urban areas, while the rest of the world relies on the more common and practical mid- and low-band networks. Since developing an mmWave-enabled modem would require significant engineering effort and a high cost for a technology that isn't relevant to most countries, Apple finds it more advantageous to focus its efforts on the global mid- and low-band capabilities of its modem, leaving the task of supporting specialized US networks to Qualcomm's readily available and efficient chips.
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