Research commissioned by Qualcomm shows that in densely populated urban areas, the iPhone 16e performs particularly poorly, with noticeable overheating and "sharp dimming of the screen" occurring within just a two-minute testing interval on T-Mobile's 5G network in New York City; in terms of data download speeds, Android phones using Qualcomm chips and priced similarly can be up to 35% faster, while upload speeds can be as much as 91% faster.
$Apple (AAPL.US)$ After seven years and spending billions of dollars, the first self-developed baseband chip C1 was launched, but a recent research report attempts to break Apple's technology myth. It shows that in densely populated urban cellular network environments, the first Smart Phone equipped with the C1, the iPhone 16e, falls far behind Android devices powered by Qualcomm chips in both download and upload speeds.
Commissioned by $Qualcomm (QCOM.US)$ The smartphone assessment study conducted by Cellular Insights Inc. shows that the iPhone 16e performs disappointingly on T-Mobile's 5G network in New York City. The report indicates that while the C1 performs adequately under ideal conditions, it significantly lags behind in "scenarios where next-generation modems should excel."
The report emphasizes that for users using devices in dense urban, indoor, or uplink-heavy environments, better 5G performance is "not only theoretical but also quantifiable, repeatable, and operationally significant."
According to Cellular Insights' research report, compared to the iPhone 16e, two similarly priced Android phones using Qualcomm chips show a maximum speed difference in data download of up to 35%, and in information upload speed, a maximum of 91%. This difference is even more pronounced when the network is busy or the phone is further from the signal tower.
Even more concerning is that during testing, the iPhone 16e exhibited "significant heating" and "the screen drastically dimming" within just two minutes of the testing interval. This performance sharply contrasts with Apple CEO Tim Cook's previous claim that C1 is "the most energy-efficient modem in iPhone history." However, the report does not specify whether consumers can perceive the decline in data communication speeds during actual use, nor does it discuss battery life issues.
On the day the report was released, on May 27, this past Tuesday, Qualcomm and Apple's stock prices both maintained a gain of over 2% during midday trading, following signals of easing trade tensions between the EU and US leaders and officials, mirroring the rebound of the US stock market.
Qualcomm's precise counterattack.
The timing of this research report is quite delicate. Qualcomm is launching an attack on one of its largest clients, Apple. Historically, Apple has contributed about 20% of Qualcomm's revenue, and Qualcomm has been the exclusive modem supplier for the iPhone product line prior to the release of the iPhone 16e.
Qualcomm has previously informed investors that it expects revenue from modem sales to Apple to eventually drop to zero, but the company will compensate for this loss by expanding into other areas. Media reports state that Apple paid Qualcomm $7.2 billion in licensing fees in 2022 alone.
From a technical specifications standpoint, the limitations of the C1 are obvious. Media reports indicate that the C1 only supports four-carrier aggregation of low-frequency 6-GHz networks, with peak speeds of around 4 Gbps; whereas the Qualcomm X75 supports five-carrier aggregation of low-frequency 6-GHz networks, plus ten millimeter-wave carriers, with theoretical speeds reaching 7-10 Gbps.
The cost and compromise of a seven-year journey.
Apple's journey with baseband chips began with a lawsuit against Qualcomm in 2017, when Apple accused Qualcomm of charging excessive patent fees. After a failed collaboration with Intel, Apple launched its own baseband project in 2018, acquiring Intel's baseband team of over 2,200 employees and more than 17,000 technical patents.
However, this project faces numerous challenges. Former Apple's wireless director, Jaydeep Ranade, once stated: "It is absurd to think that just because Apple makes the best chips in the world, they can also make modems."
The final compromise of the C1 is clearly visible: the iPhone 16e does not support 5G millimeter-wave technology globally, which could affect its network performance in densely populated places such as shopping malls and airports in the U.S. market.
Market impact and future competition.
Despite the performance gap, the C1 has indeed made breakthroughs in energy consumption. According to Apple's official website, the iPhone 16e has a video playback endurance of up to 26 hours, not only surpassing the similarly configured iPhone 16 (22 hours) but also nearing the iPhone 16 Pro's 27 hours.
Apple's Senior Vice President of Hardware Technology, Johny Srouji, stated in a media interview, "We have built a platform that spans generations. The C1 is just the beginning." According to Apple's plans, the C2 will address the shortcomings in millimeter wave technology and be rolled out across all iPhones next year, while the goal for the C3 is to surpass Qualcomm's modem.
However, a study commissioned by Qualcomm and conducted by Cellular Insights warns the market that Apple's journey to catch up in modem technology may be more challenging than expected. As Apple attempts to cut costs and improve profit margins through in-house modem development, performance gaps may pose the biggest challenge. For investors, the outcome of this technological competition will directly affect Apple's future competitiveness and profitability.
Editor/Rocky
