Apple’s own 5G chip failed? $68.3 billion was wiped off market value overnight

Earlier today, renowned Apple analyst Ming-Chi Kuo said apple's 5G chip development may have failed, meaning qualcomm will still be in the iPhone in 2023 Qualcomm will receive 100% of the order.

Previously, Kuo thought Apple's 2023 iPhone would use its own modem chip, rather than qualcomm chips.

According to Otakara, citing industry sources, Apple has been working on its own baseband, but it is a long project, not a serious failure, and the plan to use it next year has been delayed.

Apple plans to use its own baseband chips next year, with TSMC remaining its sole contract manufacturer, which will use the 5nm process and produce 120,000 chips a year.

Qualcomm has already hinted that Apple's home-grown baseband will be available soon, and has suggested that its share of iPhone baseband orders will drop to around 20% by 2023.

As for the reason of the delay, industry chain officials said that baseband chips are different from other chips, which can not be directly designed and produced. It needs to be tested in all aspects in different operators. This process is long, and the epidemic has slowed down Apple's progress to some extent.

Carriers around the world have also been slower than Cook expected to test apple's baseband.

Shares of Qualcomm (QCOM) closed up 3.48% at $131.60 per share, giving the company a market capitalization of $147.39 billion. Its market value rose $4.95 billion in a single day.

Apple (AAPL) fell 2.98% to $137.44 a share, wiping $68.3 billion off its market value in a single day, with a total market cap of $2.2 trillion.