Apple has reportedly informed Intel that it will not be buying Intel's 5G modem chips for iPhones planned for 2020, according to Israeli news site CTech. Securing a deal with the iPhone maker would strengthen Intel's market position amid the shift to 5G, a set of networking technologies now being implemented by major carriers.
The executives believe Apple's decision not to use Intel chips was the result of "many factors", including its interest in even faster connectivity options.More news: Turkey condemns Israel's demolition of Bedouin village in West Bank
Apple was Intel's main client for its combined Wi-Fi, 5G, and Bluetooth chips and after this notification, the chipmaker is expected to shelve the product and stop the development process.
Three reasons stand out as to why Apple could be holding off on the hardware. Perhaps Apple wants to wait until this is more mature.More news: Under fire for ethics scandals, EPA chief Pruitt resigns
Using a new Wi-Fi standard known as WiGig (802.11ad) in "any mobile product brings new and unanticipated challenges", the communications said. The company hopes to re-pitch Sunny Peak to Apple in 2022 according to sources. Leaks back in December 2017 suggested that MediaTek was clawing its way onto the iPhone bill of materials, a move which would help dilute the Cupertino firm's dependence on a handful of suppliers. If Apple were to make its own chip, it wouldn't need to buy chips from Qualcomm, as it now does for the majority of iPhones, but may still need to pay licensing fees depending on the result of the legal battle.
Apple was widely expected to use the 5G modems in its future iPhones, especially considering the legal battle that it's waging with Qualcomm over LTE modem licensing costs.More news: Nauru criticized for banning Australian state broadcaster
As we await what Apple has in store for its 2018 iPhones, the company is already deep into planning its strategy for 2020 and the advent of 5G. "We remain committed to our 5G plans and projects". But Apple probably isn't going to have an iPhone ready for 5G until much later, with 2020 being our best bet for a 5G iPhone.
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