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Investing.com -- Qualcomm Incorporated (NASDAQ:QCOM) is touting a new study highlighting the performance edge of its 5G modem chips over Apple Inc’s (NASDAQ:AAPL) first in-house modem, as both tech giants vie for wireless supremacy. The report, conducted by Cellular Insights and funded by Qualcomm, found that Android smartphones powered by its Snapdragon X75 and X80 modems significantly outperformed Apple’s C1 modem in download and upload speeds, particularly in challenging urban 5G environments.

Apple’s iPhone 16e, the first device equipped with its custom-built modem, lagged behind competitors while connected to T-Mobile’s standalone 5G network in New York City. According to the study, Qualcomm-powered Android phones recorded up to 35% faster download speeds and as much as 91% faster upload performance.

While Apple’s modem kept pace under ideal signal conditions close to cell towers, performance gaps widened in low-signal areas such as indoors or at greater distances. “Performance deltas became increasingly pronounced as signal conditions deteriorated,” the Cellular Insights report stated, citing more consistent throughput and superior carrier aggregation on Qualcomm hardware.

The test results come at a strategic inflection point for both companies. Apple spent years developing the C1 modem to reduce reliance on outside suppliers, with Qualcomm previously serving as Apple’s exclusive provider and generating nearly 20% of its revenue from the relationship at its peak.

Qualcomm’s modems leveraged advanced features such as 4CC downlink and 2CC uplink carrier aggregation, while the iPhone 16e lacked observed ULCA and had fewer active component carriers. “Greater platform maturity” and support for features like FDD+FDD ULCA were described as key differentiators in the report.

Despite being commissioned by Qualcomm, the study offers early insights into the technical hurdles Apple faces in bringing critical infrastructure components in-house. The C1 modem marks a first attempt in a segment where Qualcomm has a two-decade development lead and wide licensing moat.

Wall Street has taken note: Qualcomm shares rose 2.6% amid the report’s publication, reflecting investor confidence in its continuing technological advantage. Apple stock was left unchanged, up 2.5%, but the company could face scrutiny over whether future iterations of its modem can close the performance gap.

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