iphone 16e's baseband chip stumbles against qualcomm in head-to-head

2025-05-28 general

New York City, Wednesday, 28 May 2025.
apple’s iphone 16e, powered by the new c1 baseband chip, is facing scrutiny. tests reveal significant performance gaps compared to android phones using qualcomm chips. in new york city, the iphone 16e experienced overheating and screen dimming on t-mobile’s 5g network within just two minutes. download speeds lagged by up to 35%, while upload speeds were a staggering 91% slower. this could threaten apple’s market position and impact future iphone demand. the c1 chip is manufactured by tsmc.

Qualcomm’s strategic play

The report highlighting the iphone 16e’s shortcomings was commissioned by qualcomm, adding a layer of intrigue to the findings [1]. this move can be seen as a counteroffensive, given that apple has historically accounted for approximately 20% of qualcomm’s revenue [1][2]. qualcomm has already prepared investors for the eventuality of zero revenue from apple modems, planning to offset this loss by expanding into other sectors [1]. in 2022, apple reportedly paid qualcomm $7.2 billion in licensing fees [1]. the timing of this report is critical as qualcomm aims to retain its market dominance [1][6].

Technical limitations of the c1 chip

A closer look at the c1 chip’s technical specifications reveals certain limitations. the c1 supports four-carrier aggregation on low-frequency 6-ghz networks, achieving peak speeds of approximately 4 gbps [1]. in contrast, qualcomm’s x75 supports five-carrier aggregation on low-frequency 6-ghz networks, along with ten millimeter-wave carriers, potentially reaching theoretical speeds of 7-10 gbps [1]. furthermore, the iphone 16e lacks support for 5g millimeter wave technology, which could impair its network performance in densely populated areas like shopping malls and airports within the united states [1][2].

Apple’s costly endeavor

Apple’s journey toward developing its own baseband chip began in 2017 with a lawsuit against qualcomm over patent fees [1][2]. after a failed partnership with intel, apple initiated its in-house baseband project in 2018, acquiring intel’s baseband team, which included over 2,200 employees and more than 17,000 technology patents [1][2]. despite these significant investments, the project has faced considerable challenges. jaydeep ranade, former apple wireless director, questioned the assumption that apple’s chip-making prowess would automatically translate to modem development [1][2].

Market impact and future competition

Despite the performance deficiencies, the c1 chip demonstrates improvements in energy efficiency. apple claims the iphone 16e offers up to 26 hours of video playback, surpassing the iphone 16’s 22 hours and nearing the iphone 16 pro’s 27 hours [1][2]. apple’s senior vice president of hardware technologies, johny srouji, views the c1 as just the beginning, with plans for the c2 to address millimeter wave limitations and the c3 to surpass qualcomm’s baseband technology [1][2]. however, the cellular insights study suggests that apple’s path to catching up in baseband technology may be more challenging than anticipated [1][2].

Investor considerations

For investors, the performance gap in the c1 chip could pose a significant challenge for apple. while apple aims to reduce costs and increase profit margins through self-developed baseband chips, the performance disparity could impact its competitiveness [1][2]. the outcome of this technological competition will directly influence apple’s future market position and profitability [1][2]. on may 27, both qualcomm and apple stocks experienced gains of over 2% in midday trading, mirroring a broader market rebound driven by easing trade war concerns [1][2].

Bronnen

baseband chip performance