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Apple’s Modem Testing Sparks Intriguing Investment Opportunities

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Apple Inc. (NASDAQ: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.

See Also: Meta Stock Has Soared Almost 50% Over A Year But Now The Company Is Slashing Staff Stock Awards As It Braces To Face OpenAI, Amazon And Others In AI Race

The latest rumor signals a major step in Apple’s effort to move away from Qualcomm Inc.’s (NASDAQ: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.

Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.

The C1 Apple modem is a monumental technical achievement. A several billion dollar effort that has been in the works for 7 years. In the end it gets two sentences in the press release and 15 seconds in the announcement video. Apple is clearly downplaying this intentionally.

— Mark Gurman (@markgurman) February 19, 2025

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. (NASDAQ:AVGO). He also said that only the slim iPhone 17 model is expected to adopt Apple’s C1 modem.

Following Qualcomm, Broadcom's Wi-Fi chips will also be replaced by Apple's in-house chips at a faster pace. My latest industry survey indicates that all new 2H25 iPhone 17 models will feature Apple's in-house Wi-Fi chips (vs. only the slim iPhone 17 will adopt Apple's C1 modem…

— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) February 20, 2025

Meanwhile, Flighty CEO Ryan Jones has questioned whether the C1 modem in the iPhone 16e can match expectations.

Actually important about iPhone 16e:

– increase from $429 → $599 is a lot. 8GB and A18 alone don’t justify. This is not really a typical “SE”

– Apple’s C1 modem, can it hold up?

– Why no MagSafe? kneecapping for 16 sales and repair cost?

– “2-in-1 camera” is brilliant…

— Ryan Jones (@rjonesy) February 21, 2025

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.

Check out more of Benzinga’s Consumer Tech coverage by following this link.

Photo Courtesy: Shutterstock.com

Read Next:

  • China’s Tech Giants Alibaba, ByteDance, And Meituan Are Expanding Their Silicon Valley AI Footprints Amid US Efforts To Block Progress: Here’s Why

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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