Apple announced it had started the transition towards building its first cellular modem for use in its devices, sending shares of Qualcomm down during pre-market trading Friday.
In 2019, Apple made a $1 billion acquisition of Intel's modem business – which helps the iPhone maker to develop its own cellular modems. Apple did not specify when the modem would be ready to be installed in products.
Currently, the latest iPhones with 5G use parts sourced from Qualcomm.
Earlier this week, some reports suggested that Apple is planning to introduce its latest in-house microchips as early as spring 2021.