Apple Inc. AAPL is reportedly working on its modem technology. This could result in slimmer iPhones and introduce cellular capabilities to Macs and headsets like Vision Pro.
What Happened: Apple is developing a new modem, internally named Sinope, which is set to debut next year, reported Bloomberg, citing people familiar with the matter.
This modem will gradually replace components from Qualcomm Inc. QCOM over three years.
Apple engineers have expressed concerns about Qualcomm’s modems taking up too much space in iPhones, the report noted.
See Also: Apple Might Have To Commit $1 Billion To Indonesia To Reverse iPhone 16 Ban
The first device to feature the new modem will be the iPhone SE, launching next year. It will be followed by Apple’s thinnest phone yet, codenamed D23, later in 2025.
This transition paves the way for Apple to explore foldable devices and introduce cellular connectivity to Macs by 2026. As per the report, Apple is also considering adding cellular support to headsets.
The first modem will also appear in low-end iPads next year, with a 2026 update planned for Pro versions of the iPhone and iPad.
The tech giant is not currently developing a modem for the Apple Watch.
Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.
Why It Matters: It was previously reported that Apple has plans to launch a foldable iPhone in 2026. This move could boost the market, with a projected growth of over 30% in 2026, according to display analyst Ross Young.
However, Chinese tech giant Huawei Technologies Co. has also intensified its efforts to challenge Apple’s dominance, making the competition even tougher for the iPhone maker.
Last month, Apple reported its fourth-quarter earnings highlighting the revenue of $94.9 billion, surpassing analyst estimates.
Price Action: Apple’s stock declined 0.082% on Friday, closing at $242.84, and fell an additional 0.22% in after-hours trading to $242.30. Year-to-date, Apple shares have gained 30.81%, slightly ahead of the Nasdaq 100 index’s 30.7% rise during the same period, according to Benzinga Pro data.
Apple’s consensus price target, derived from evaluations by 31 analysts, is $242.26, with the highest target of $300 set by Wedbush on Nov. 29. Recent ratings from Wedbush, Morgan Stanley, and Maxim Group average $262.67, suggesting a potential upside of 8.4%.
Check out more of Benzinga’s Consumer Tech coverage by following this link.
Read Next:
Photo courtesy: Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
