Core Insights - Apple has launched its first self-developed baseband chip, C1, after seven years and significant investment, but a recent study challenges its performance compared to Qualcomm's chips [1][3] - The study indicates that the iPhone 16e, equipped with the C1 chip, underperforms in urban 5G network environments, particularly in download and upload speeds compared to Qualcomm-powered Android devices [1][2] - Qualcomm's X75 chip shows superior capabilities, supporting higher data speeds and more advanced network features than Apple's C1 [3][4] Performance Evaluation - The iPhone 16e's performance in New York City on T-Mobile's 5G network was disappointing, with download speeds lagging by up to 35% and upload speeds by up to 91% compared to similar-priced Android devices [1][2] - The report highlights that the C1 chip, while performing adequately under ideal conditions, fails to meet expectations in dense urban settings where 5G performance is critical [1][2] Technical Limitations - C1 supports only four-carrier aggregation on low-frequency 6-GHz networks, with a peak speed of approximately 4 Gbps, while Qualcomm's X75 supports five-carrier aggregation and can reach theoretical speeds of 7-10 Gbps [3][4] - The iPhone 16e does not support 5G millimeter-wave technology globally, which may hinder its performance in high-traffic areas in the U.S. market [4] Market Dynamics - Despite performance issues, the C1 chip has made strides in energy efficiency, with the iPhone 16e offering up to 26 hours of video playback, surpassing the iPhone 16 and nearing the iPhone 16 Pro [5] - Apple's hardware technology senior vice president stated that C1 is just the beginning, with plans for the C2 chip to address current limitations and the C3 chip aimed at surpassing Qualcomm's technology [6] Competitive Landscape - Qualcomm's recent study and timing suggest a strategic move to counter Apple's entry into the baseband market, as Apple has historically contributed about 20% of Qualcomm's revenue [3] - The outcome of this technological competition will significantly impact Apple's future competitiveness and profitability as it seeks to reduce costs and improve margins through in-house chip development [6]

Group 1 - Apple is set to launch the new ultra-thin iPhone 17 Air, which will feature advanced battery technology using silicon anodes instead of traditional graphite materials, resulting in a 15% increase in energy density for the same volume [1] - TDK, the Japanese supplier, has accelerated production of the new generation silicon anode batteries, which were originally scheduled for third-quarter delivery, to support timely application in this year's ultra-thin model [1] - The iPhone 17 Air will also include Apple's self-developed C1 baseband chip, which is more energy-efficient compared to Qualcomm's baseband, further enhancing battery life [4] Group 2 - The iPhone 17 Air will feature a 6.6-inch OLED display with a 120Hz refresh rate and always-on display functionality, and it will be Apple's thinnest model at approximately 5.65mm thick [4] - The design includes a horizontal camera module on the back, with a single camera and a curved transition between the rear cover and the camera module for improved ergonomics [4] - The iPhone 17 series is expected to be unveiled in September and will include four versions: iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and the new iPhone 17 Air, which is anticipated to be priced at around $899 [4]

Core Viewpoint - Apple has quietly launched its first self-developed mobile baseband chip, C1, which is a significant milestone in its supply chain autonomy, potentially indicating a shift away from Qualcomm [1][3]. Group 1: Development and Strategy - Apple has been focusing on hardware chip autonomy for years, designing its A-series processors for iPhones and M-series for Macs, with the C1 baseband chip being the most developed project [3]. - The development of the C1 chip followed Apple's acquisition of Intel's 5G baseband team for $1 billion in 2019, after years of reliance on Qualcomm due to Intel's underperformance [3][17]. - Apple has chosen a cautious marketing approach for the C1 chip, emphasizing its energy efficiency rather than its performance to avoid undermining its higher-end iPhone models that still use Qualcomm chips [5][7]. Group 2: Performance and Testing - Despite the low-key marketing, the C1 chip reportedly outperforms Qualcomm's existing technology in various aspects, including download speed, upload stability, and connection quality [7]. - Testing results show that the C1 chip achieves similar average download speeds (approximately 450-670 Mbps) compared to Qualcomm's X71 chip, with slightly better upload speeds [7][9]. - The C1 chip's power consumption is 25% lower than that of the Qualcomm X71, with significant reductions in battery usage during video playback and data downloads [9][11]. Group 3: Future Implications - Apple's CEO Tim Cook expressed excitement about the C1 chip's performance and its potential to enhance battery life, indicating a strategic shift towards self-developed communication chips [13]. - Currently, all mid to high-end iPhone models still rely on Qualcomm's mobile data solutions, with a supply agreement in place until 2026 [13][15]. - The successful launch of the C1 chip may lead to the development of a next-generation chip (potentially C2), expected to support millimeter-wave technology and replace Qualcomm entirely after the current contract ends [15][17]. Group 4: Financial Impact - The self-developed baseband chip allows Apple to save $5-6 per iPhone in patent fees, translating to over $1 billion in annual savings [17]. - Once Apple fully transitions to its own baseband technology, it will be able to assert its leadership in the communication chip sector without the need for a subdued marketing approach [17].