According to reports, Apple is preparing to launch its long-awaited series of cellular modem chips next year, which will replace components from longtime partner Qualcomm.

By 2027, the iPhone manufacturer hopes to surpass Qualcomm's technology.

Investors have been forewarned by Qualcomm, a prominent manufacturer of modem chips that link phones to mobile data networks, that Apple will soon cease using its chips.

Investors are eager to see if Qualcomm's foray into laptops and AI-powered data centres can pick up speed fast enough to offset any declines in Apple revenue, as the chip manufacturer has a contract to continue selling processors to Apple until at least 2026.

Apple's new component will be used in the iPhone SE, the company's entry-level smartphone. Subsequent generations of increasingly sophisticated CPUs will follow.

The iPhone manufacturer has been developing its own modem technology, and in 2019, it paid $1 billion to acquire Intel's modem division.

Apple doubled down on its pursuit of a self-designed modem chip in early 2019, by moving its modem engineering efforts into the same chip design unit that creates the custom processors for its gadgets.

Apple and chipmaker Broadcom inked a multibillion-dollar agreement last year to create 5G radio frequency components. Businesses that supply Apple, like Skyworks Solutions and Qorvo, could suffer from such a merger.