Apple’s C1 Modem Was Born From Samsung’s Refusal and Qualcomm’s Grip

Apple’s new custom C1 5G modem debuting in the iPhone 16e marks a milestone in its long-term plan to take control of its hardware destiny. Years of R&D and billions in investments have culminated in Apple severing its dependency on Qualcomm for 5G baseband chips. But behind the scenes, the path was far more dramatic – and one missed partnership might have changed everything.

According to industry insiders, Apple was once close to partnering with Samsung for 5G modem supply. Such a deal could have given Apple critical leverage in its negotiations with Qualcomm. However, the agreement collapsed – not over pricing or production hurdles – but due to internal resistance from Samsung itself. A key executive, reportedly Jung Hyun Ho (HH), shut the initiative down, allegedly believing Samsung shouldn’t ‘help the competition.’

This stance is seen as ironic given Samsung already supplies Apple with OLED displays and DRAM chips – critical components for iPhones and other Apple devices. Unlike displays and memory, 5G modem technology represents a deeper level of IP integration, one that Apple clearly didn’t want to depend on competitors for any longer.

The failed deal with Samsung arguably gave Apple the final push to accelerate its in-house modem development. With Qualcomm’s licensing deal set to expire in 2027, Apple now appears poised to wean itself off third-party modems entirely – perhaps permanently closing the door on any potential revenue stream Samsung could have earned through modem sales.

Commentators note that this pattern fits a larger trend in Apple’s playbook: the company builds in-house when external suppliers can’t meet performance or pricing expectations. It did so when Intel faltered with chips, and again when Qualcomm’s modems became cost-prohibitive. For Apple, control isn’t just strategic – it’s existential.

Samsung’s decision may go down as one of its bigger strategic fumbles in recent memory. It didn’t just miss out on a lucrative deal – it helped motivate a competitor to build something better, in-house. Now, with the C1 modem live and Qualcomm’s contract ticking down, Apple is rewriting the rules of mobile connectivity – and leaving old dependencies behind.