Apple's pursuit of creating a distinction between its vanilla iPhone models and the Pro models may come at a cost. The company's decision to include Qualcomm's new Snapdragon X75 modem in the upcoming iPhone 16 Pro and iPhone 16 Pro Max could potentially leave the iPhone 16 and 16 Plus with a downgrade in cellular connectivity.
Analyst Jeff Pu, writing for Haitong International Securities, confirms this move by Apple. The Snapdragon X75 modem offers faster 5G download and upload speeds, along with improved power efficiency and reduced space requirements compared to the current X70 modem. However, these benefits will only be available if you opt for the Pro models, leaving the regular iPhone 16 models without the latest technology.
This division in modem technology between the two styles of iPhones is a departure from Apple's usual approach. In the iPhone 12 family, all models had access to the same modem technology. This decision raises concerns about potential backlash from consumers who may feel shortchanged by missing out on the latest advancements in connectivity.
It's worth noting that Apple has long harbored aspirations to design and manufacture its own modems. In 2019, the company acquired Intel's modem division for $1 billion with this goal in mind. However, progress on Apple's in-house modem development has been limited, leading the company to extend its deal with Qualcomm to supply iPhone modems until 2026.
The issue of modems is one aspect of iPhone production that Apple has relatively little control over. Although the company will continue its efforts to develop its own modem solution, it remains reliant on Qualcomm for the next few generations of iPhones.
Qualcomm's Snapdragon X70 5G modem has been a favored choice for high-end and premium smartphones throughout 2023. In contrast, the X75 finds its place in every Galaxy S24 handset, including the more affordable entry-level variant with 128 GB of storage. This particular Galaxy model offers similar specifications to the iPhone 15 and is available at the same $799 price point.
With the Galaxy S24 boasting a faster processor, enhanced connectivity, and a commitment to leveraging artificial intelligence for an optimized user experience, one could argue that it outperforms the iPhone 15. If Apple chooses to downgrade the iPhone 16 by not incorporating the default modem of 2024, it becomes increasingly challenging to justify the $799 price tag for the new iPhone.
As consumers eagerly anticipate the release of the iPhone 16 series, this divisive decision regarding modem technology could potentially impact Apple's ability to maintain the appeal and value of its vanilla iPhone models. It remains to be seen whether the advantages offered by the iPhone 16 Pro will be enough to outweigh any perceived shortcomings in the regular iPhone 16 and 16 Plus.
