Rumor
Apple develops C2 custom modem and new aluminum manufacturing process for upcoming hardware
Monday, February 16, 2026 at 09:22 PM
Apple is reportedly developing its first proprietary 5G modem chip, codenamed C2, to replace Qualcomm components in the upcoming iPhone 18 series. Additionally, Apple is implementing a new manufacturing process for aluminum enclosures to improve production efficiency and cost for a new budget laptop. The upcoming A20 processor is also noted for the next-generation flagship devices.
Context
Apple is preparing a significant hardware expansion for March 2026, headlined by an entry-level MacBook priced well below $1,000. To achieve this aggressive price point without sacrificing its signature build quality, the company is implementing a novel high-speed aluminum manufacturing process and utilizing A-series iPhone processors instead of more expensive M-series chips. This strategy aims to capture the education and business markets by providing a premium chassis at a lower cost, challenging competitors in the budget-to-midrange laptop segment.
For the upcoming iPhone 18 flagship, the shift toward vertical integration intensifies with the debut of the C2 custom modem. This proprietary chip is expected to replace Qualcomm silicon in high-end models, marking a major milestone in Apple's long-term effort to control its connectivity stack. Combined with the introduction of the A20 processor and a potential foldable device later this year, these advancements suggest Apple is prioritizing reduced component dependency and supply chain independence to protect margins while driving hardware innovation.
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