The iPhone will not have the 5G up to now – Apple has flown and left Qualcomm

This news could only be significant for a small group of users, if not a "but". A few days earlier, a Bloomberg publication had revealed that the iPhone would not benefit from 5G support at the earliest in 2020. The reason – Intel's 5G modems, which plan to use the company, have serious impact on the work of Apple smartphones.

The first shotgun

This year, Apple abandoned the Qualcomm modems and switched to Intel products. It was preceded by several years of transition when the company used 4G modems from both manufacturers. Meanwhile, insiders said that Apple had to slow down the speed of connection to the iPhone with Qualcomm modems to avoid any such difference with devices using Intel components.

Apple and Qualcomm have also resolved the dispute over the past three years. for the last billionth of a fine in three countries (for example, the last payment absorbed 90% of the quarterly profits of the company). Apple's management felt that Qualcomm wanted too many deductions for its development and said the company was monopolizing the LTE mobile modems market. Apple also said that Qualcomm also paid him a monopoly position on iPhone and iPad. The course of these developments is described in a major Bloomberg article, titled "The War of a Billion Dollar Against $ 18 for Apple and Qualcomm" ("The War Between Apple and Qualcomm for a Billion Dollar for Component $ 18 "). Anyone interested in the subject can consult it via this link.

The cost of license fees was considered a predator and others. However, only Apple has entered an open conflict (according to rumors, in South Korea, the company would have entered into a conspiracy with Samsung, but Samsung did not formally blame the company). For the moment, nobody has arrived, apparently thinking that Qualcomm would fight with the rebel until the last

The fact is that its revenue from Qualcomm comes from two main business sectors – semiconductors (sales chipsets) and license deductions, which Qualcomm receives from each device sold, as it has more than 9,000 patents on wireless technology used in all modern gadgets. According to last year 's report, license fee revenues accounted for about a quarter of Qualcomm' s revenue structure, but revenues generated by this management relate to the company more than half of the company 's revenues. money. Apple was seduced by Qualcomm's most expensive dairy cow.

Crash, the economic model of the company Cooperum failed, but with the cooperation of Qualcomm, Intel has gradually abandoned its activities. Earlier this year, rumors were also heard that Apple would start using the 5G modems from the Taiwan-based manufacturer Mediatek, a rather weak player in the market in terms of technology (although the company has regained a niche in the market. because of its low price). The rumors have not yet been confirmed, but even in this case, such a decision goes in the direction of Tim Cook to reduce the cost of Apple's equipment components.

Falshstart Apple

There were also rumors that Apple was planning to add iPhone 5G support in 2019 But according to the latest information, iPhone equipped with 5G modems under Intel operate unstable and consume quickly drums. In addition, their performance at the time of connection to the network is not sufficient. In these conditions, the 4G smartphone works well, unlike a smartphone 5G unstable. Apple can not release such a model to the market, so it will have to wait at least 2020.

The Fortune publication, which refers to the Bloomberg material, says that in 2019, the penetration 5G networks will always be the minimum and real opportunity of their support with a smartphone will not be. Therefore, the publication indicates that the delay is not so important for Apple.

In the context of 5G, one must understand one more thing: the fifth-generation network will not improve the user experience, it is primarily necessary for the Internet of Things – smart cities , self-managed cars, etc. But the real difference between 4G and 5G smartphone users will not notice it.

Finally, the third element – the addition of another component, especially with the support of new technology, will increase the cost of the device. Qualcomm promises not to be seduced by new technology, so the implementation of 5G costs less than 4G. Therefore, for a unit with a module, manufacturers will pay "only" 2.275% of the cost, with some – 3.25% but not more than $ 13. The appetite of other companies is lower.

But none of these reasons to leave an iPhone with a 5G prevents it from replacing the main one. The 5G's support will receive smartphones from more than 20 Android manufacturers, including Samsung and Huawei, as well as smaller players such as ZTE, LG, HTC, Sharp, Sony, Motorola, ASUS, and even completely unknown to our market and sales below Sierra's global standards. , Telit, Kailu Technology. Samsung, Huawei and Medaitek have already introduced their own 5G modems, while others will use the Qualcomm solution. The smartphones of all these manufacturers are cheaper than the iPhone. If the difference with Samsung is low, the same goes for businesses. Apple sells more than anyone, but loses the title of technology leader because even at such a high price, by trading for money, it loses access to the best technologies in the market.

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At one time, Apple was at the forefront of those who released the device with 3G and 4G. In 2019, the company's management will probably be able to indicate in the rationale that she decided that the user still does not need the 5G and will have it officially reason. But in terms of perception, it's a huge failure. And judging by Qualcomm's dynamism on the country that will win the first 5G, the company will try to make the most of its potential to take revenge on its former partner. In the long run, this can be expensive for Apple, given the drop in sales of expensive smartphones in general and the rate of revenue from services and ecosystems.

Nina Glushchenko