MediaTek will supply modem chips for Apple Watch models from next year, replacing Intel, Bloomberg reported on Wednesday. This marks MediaTek’s first entry into Apple’s major hardware product supply chain.
Why it matters: The use of MediaTek’s modem chips in Apple Watch is expected to help MediaTek growth. For Apple, diversifying suppliers can enhance innovation, reduce dependency on a single provider, and potentially lower costs.
Details: Apple plans to add satellite connections and a blood-pressure monitor to its smartwatch for 2025, the Bloomberg report said. The satellite feature, enabling message-sending without cellular or internet connections, will debut in next year’s Apple Watch Ultra.
- According to Bloomberg, Apple has been evaluating MediaTek’s products for over five years. The shift to using MediaTek’s modem chips in the Apple Watch will bring support for 5G Redcap. Currently, the Apple Watch uses 4G LTE and has yet to transition to 5G, unlike the iPhone.
- 5G Redcap (Reduced Capability) is a specialized 5G service designed for devices that do not require full 5G, such as IoT (Internet of Things) devices and wearables. With lower data speeds and reduced power consumption it is ideal for products that need less data but still benefit from a 5G connection. This allows for more efficient connectivity in devices such as smartwatches and sensors.
- Intel’s modems are currently limited to 4G LTE speeds, whereas MediaTek’s solutions support 5G Recap, according to US tech media MacRumors.
- MediaTek is leveraging TSMC’s latest manufacturing processes with its Dimensity 9400 chip to compete with Qualcomm and Apple, the Canadian tech media outlet Wccftech stated. MediaTek’s 5G modems are likely to surpass Intel’s offerings not only in raw performance but also in power efficiency, the report added.
Context: In the third quarter of 2024, the global market for wearable wristband devices grew by 3% year-on-year, reaching 52.9 million units, according to market analyst firm Canalys. The top three brands by market share were Apple (16.1%), Xiaomi (16.1%), and Huawei (13.5%).
- In the third quarter of 2024, MediaTek’s revenue reached TWD 131.813 billion ($4.06 billion), a 19.7% increase compared to the same period last year. During this quarter, MediaTek launched its new flagship chip, the Dimensity 9400, which utilizes TSMC’s second-generation 3nm process technology.
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