Apple plans to launch its next-generation cellular modem chips next year, replacing components currently sourced from Qualcomm, as reported by Bloomberg News on Friday. 

 The company intends to exceed Qualcomm's technological capabilities by 2027, according to informed sources. 

 Qualcomm, a leading modem chip designer for mobile data connectivity, has advised investors that Apple will ultimately cease using its chips.

Currently, Qualcomm has an agreement to supply chips to Apple until at least 2026, and investors are eager to see if Qualcomm's expansion into laptops and AI-driven data centers can sufficiently offset any potential revenue declines from Apple.

The new modem is expected to be featured in the iPhone SE, Apple's budget-friendly smartphone, which is due for its first update since 2022 next year. This will be followed by subsequent generations of more advanced chips, as noted in the Bloomberg report.

Qualcomm did not provide an immediate response to Reuters' request for comment, and Apple chose not to comment.

Apple's strategic investment in modem technology includes a $1 billion acquisition of Intel's modem division in 2019, signifying a commitment to developing proprietary modem chips. 

In early 2019, the integration of modem engineering into the custom processor design unit further solidified this commitment. 

Furthermore, a multi-billion dollar agreement with Broadcom for 5G radio frequency components may impact current suppliers such as Skyworks Solutions and Qorvo.