The possibility increases that Apple (AAPL) might not have an iPhone 5G ready for sale in 2020 as planned, a Wall Street analyst.
At the same time, Samsung and other handset manufacturers plan to launch 5G compatible smartphones this year. Fifth generation wireless networks are just starting to operate in China, the United States, and elsewhere. Known as 5G, networks offer ultra-fast downloads and high bandwidth streaming with little delay.
"Unless otherwise agreed Qualcomm (QCOM) in the coming months, field work suggests that Apple is increasingly threatened with shipping an iPhone 5G by 2020, "said Timothy Arcuri, an analyst at UBS, in a note addressed to to customers on Tuesday.
Apple is wrestling with a bitter legal battle with Qualcomm over the rates and terms of patent royalties. He moved his wireless chip business to Intel (INTC), but Intel is behind in developing its 5G chip, Arcuri said.
Apple develops its own wireless modem
"We do not think that Intel will be ready with a single compatibility 5G modem, while others like Samsung and MediaTek are unlikely solutions, whether technically (MediaTek) or virtually (Samsung)," he said. said Arcuri.
Meanwhile, Apple is looking to develop its own wireless chip for use in 2021 handsets, he said. Arcuri suggested that Intel sells its modem exploitation and intellectual property to Apple.
The development of an iPhone 5G by Apple comes at a time when smartphone users are keeping their current phone longer. The average time between upgrades for iPhone users has been raised to 3.4 years, Arcuri said.
Arcuri considers the Apple action as a purchase with a target price of 215 months over 12 months. The Apple stock has risen 0.7% to 195.35% stock market today.
Apple Stock formed a cup base with handle with a purchase point of 197.79.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories about consumer technology, software and semiconductor companies.
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