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The likes of Intel and Qualcomm may well be locked into a battle over next generation communication chips, which will help phones to connect to futuristic 5G networks in the future. And the biggest of these contracts, at least with respect to mainstream devices, must be the iPhone. We can now exclude a major player in the race to provide the world with 5G chips – Apple would have informed Intel that it would not use its modems for the iPhone 2020 models. The news was reported for the first time by Calcalist.
The fact that Apple has informed Intel that it will not use its chips can have big implications for Intel. As a result of the decision, Intel reportedly halted the development of a modem known as "Sunny Peak," and the team working on the modem redirected to other efforts of Intel. The reports note that Intel expected that Apple would be the main customer of these new modems.
All hope can not be lost for Intel. The company would now focus on improving its product with the goal of reclaiming Apple for the 2022 iPhone lineup.
The news is not completely surprising. In June, Bloomberg reported that Apple was looking to get away from Intel chips, instead turning to MediaTek for its communication components. On top of that, there have been a lot of reports stating that Apple was looking to completely abandon Intel processors by 2020 – which is consistent with this new report.
Of course, until 2020, the Intel modem business could be better than ever. Apple has also been trying to reduce its reliance on Qualcomm chips, and because of that has moved to using Intel components in modern iPhones. This is probably due to ongoing legal issues between the two companies, which are expected to last for some time.
It will be interesting to see what Apple does in 2020. While it can turn completely to MediaTek for internal components, it can also enhance its relationship with Qualcomm, or maybe it hope to use its own technology, which would give him more control over the iPhone and how much an iPhone costs.
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