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By Mikey Campbell
Thursday, April 25, 2019, at 14 h 56 min. (5:56 pm ET)
Intel CEO Bob Swan announced on a teleconference Thursday that he would offer 4G wireless modems to customers throughout the year, including a next-generation iPhone.
Reuters Journalist Stephen Nellis detailed Swan's comments in a tweet, noting that the CEO seemed to imply Intel plans to provide Apple with modems for iPhone models scheduled for launch this fall.
The experts speculated that Intel would continue to provide modem hardware only to carryover models using the company's baseband chip, including the iPhone XR, XS and XS Max, just as Apple revitalizes its partnership with Qualcomm. Swan's comments, however, suggest that Intel components will be incorporated into this year's new models.
"Our expectation is that we will continue to use the 4G modem during this year, including the second iteration of this product at the start of the school year," said Swan, referring to Apple's smartphone.
Alternatively, Intel could split iPhone modems orders with Qualcomm. The two companies were in similar positions but opposed in 2018 when Apple weaned Qualcomm chips completely to the benefit of Intel.
The inclusion of Intel in the supply chain of the iPhone in 2019 means that Apple's flagship product will not be equipped with 5G network capabilities.
Apple originally asked Intel to provide a 5G chip, the XMM 8160, for iPhone and other wireless products by 2020, but Intel would have encountered a number of hurdles when developing fast network technology . The tech giant is also moving forward with the creation of its own 5G internal modem solution that could reach consumers by 2021.
The chronology cited by Swan makes sense for Apple, which resulted earlier this month in a surprise deal in a very long legal battle against Qualcomm over patent rights. Apple has agreed to pay Qualcomm an undisclosed amount against a six-year license agreement and a multi-year chip supply agreement.
When Qualcomm intends to start providing modems to Apple is not clear, but it is probably too late to include chips in a phone that should be launched this fall. As such, Intel is well positioned to take over.
A few hours after the settlement announcement, Intel announced the closure of its 5G smartphone modem business. Swan has decided to withdraw from the conflict and kill the stillborn XMM 8160, after learning of the announcement of the agreement between Apple and Qualcomm, the newspaper reports. The Wall Street Journal.
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