iPhone7 MODEM?

What does it take for Apple to use 2nd source/vendor for its iPhone7 MODEM?

Wall Street Analysts anticipate that Apple would use 2 different MODEM for its iPhone7 by 2 different semiconductor companies which is expected to be released to the market in 4th quarter of this year.

Although this is possible and other phone manufactures have done similar multi sourcing in the past, there are some challenges which a company in size of Apple can definitely handle, yet at considerable development cost.

Apple uses its own application processor, which is technically the brain of the phone.  MODEM component inside the iPhone are purchased from other semiconductor companies by Apple.

The phone’s SW/FW is written around the utilized MODEM.  In other words, different MODEM requires different SW and FW.  The SW/FW contains all optimum settings for the phone, data, radio performances as well as power consumptions, tailored and provided by the vendor.  Phone manufacturers utilize the SW/FW that they receive from the MODEM vendor and put a wrapper around it to control the functionality of the phone at application level via application processor.

Apple values reliability at the top of their priority by evaluating their vendors and using proven products which has data to support its high standard.

To make iPhone7 with 2 different MODEM’s vendor, imply 2 different SKU for the phone.  Each SKU would have its own unique performance and/or failure signatures that need to be understood carefully before mass production.  To meet Apple standard, it would take several months of evaluation for each SKU.

That would imply 2 dedicated teams at Apple to evaluate, compare, and fine tune all performances’ criteria before production release.  At the end of day, the RMA signature would be different and QA engineering team will have to learn about each MODEM challenges and resolution/mitigation for them.

You may ask; how does other phone manufacturer use multiple MODEM vendors?

Typically, phone manufacturers assign dedicated SKU for each MODEM vendor to be sold in particular geography/territory.  This is done to get around the reliability, performance, and field deltas between each MODEM in the same geographical market and unique customer experience.

For instance, SKU1 is used in Northern America, while SKU2 is used in Europe.  That way, the supporting engineering team has to deal with 1 set of issues to handle.  Therefore engineer resources are tied to territory of the phone.

What does that mean to Apple?

If Apple chooses 2 MODEM vendors, they have 2 options:

Option A) Apple will assign one SKU for each iPhone7 MODEM. Each assigned SKU will be used in a different territory/geography.   This is similar to other phone manufacturer territorial production strategy.  Meanwhile, Apple has to decide which SKU goes to which territory/geography.  Supply/demand, cost and market analysis will be the key to make the appropriate decisions by Apple.

Option B) Apple will have 2 iPhone7 variations/models, e.g. iPhone7 and iPhone7+, and the MODEM used in these phone models will be different, yet the phones will be universally marketed.  Meanwhile, Apple will have to consider which SKU goes to which iPhone model by studying supply/demand and cost analysis carefully.

Using 2 different MODEM in the very same iPhone7 SKU and sell it globally will NOT meet Apple legacy standard for reliability, performance, and unique customer/user experience. 

Time will tell what Apple may or may not do…..