The chip makers that supply Apple should have learned the lesson now, that is, never regard this business as a permanent business. Intel is the latest example. Apple eventually replaced Intel processors with self-developed chips in its Mac computers. Apple's chip dream has troubled its suppliers, worrying that they will be the next to be eliminated.

Qualcomm may be the next target. According to reports, Apple’s senior vice president of hardware technology Johny Srouji (Johny Srouji) recently announced that the company is developing its own modem chip. Modem chips are the biggest business between Qualcomm and Apple, and the two companies have recently re-established their relationship after years of intense legal disputes.

The news caused Qualcomm's stock price to fall by 7% in early trading on Friday, evaporating 85 billion yuan in market value overnight. Other well-known Apple suppliers such as Broadcom, Qorvo, and Skyworks also seem to be overshadowed. These companies mainly provide RF components for the iPhone. Broadcom shares fell nearly 2% in early trading, despite the company’s strong fourth-quarter results announced late Thursday.

Citi analyst Atif Malik predicts that given that these components must work closely together, after developing its own modem, Apple is likely to consider using open source RF chips.

But even for Qualcomm, it still has a long time to experience the pain of being replaced by Apple's self-developed products. Sludge said that Apple’s modem efforts have just begun this year, which he called a "long-term strategic investment."

The settlement agreement reached between the two companies last year includes a six-year licensing agreement and a "multi-year" chip supply agreement. Qualcomm's obvious lead in 5G technology is a key factor in promoting this settlement, and this is not an area where Apple can quickly catch up.

UBS analyst Tim Arcuri (Tim Arcuri) pointed out that Apple's "mandatory modem proliferation" may require more expertise in radio frequency technology, and the company may have to acquire these technologies through mergers and acquisitions.

Apple is ambitious and financially strong, and it is well known that it wants to control as much of its key technology as possible. This is a risk faced by any chip company that does business with this tech giant. But these efforts did not happen overnight: after Apple developed the first chip for the iPhone, it took ten years to launch a competitive PC chip.

During this period, Apple still needs to rely on its suppliers, and those technologically leading chip makers can maintain their dominant position for a longer time.