Apple is building a chip for WIFI, Bluetooth and Cellular Modem

January 13, 2023
< 1 minute

By Sorin Anagnoste

Strategy | Business Models | Tech

Apple is building a chip for WIFI, Bluetooth and Cellular Modem
Cherlynn Low/Engadget


“Apple will reportedly use in-house wireless chips in iPhones by 2025” (Engadget)

More exactly, the chips aim to replace the current offering from Qualcomm and Broadcom: WIFI, Bluetooth and Cellular Modem. Why is it changing its strategy when it comes to chips?

To understand this move we need to go to Clayton Christensen’s theory, from The Innovator’s Solution:

“When there is a performance gap — when product functionality and reliability are not yet good enough to address the needs of customers in a given tier of the market — companies must compete by making the best possible products. In the race to do this, firms that build their products around proprietary, interdependent architectures enjoy an important competitive advantage against competitors whose product architectures are modular, because the standardization inherent in modularity takes too many degrees of design freedom away from engineers, and they cannot not optimize performance.” 

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