Intel Reportedly Halts Development of 5G Modem After Losing Orders for 2020 iPhones

[MacRumors]

Apple has informed Intel that it will not use the chipmaker's 5G mobile modem in its 2020 iPhones, according to a new report.

Israeli website CTech by Calcalist reported on Wednesday that it had reviewed internal communications from Intel and spoken to "people familiar with the matter", leading it to conclude that Intel will not provide the 5G modems for Apple's 2020 mobile devices.

Apple has notified Intel it will not use a mobile modem developed by the chipmaker in its next-generation mobile device, Intel executives said in the communications. Further development of the modem component internally called "Sunny Peak" is halted and Intel's team working on the product will be redirected to other efforts, the executives said.

Calcalist said the communications it had seen described Apple as the "key mobile customer" and the "main volume driver" for the "Sunny Peak" 5G mobile modem, underlining the impact the loss of business would have on the chipmaker.

Apple was also said to be facing a "massive effort" to launch 5G in its mobile products, with Intel executives blaming the company's decision not to use its modems on "many factors", including the introduction of a faster WiGig (802.11ad) Wi-Fi standard, which brought "new and unanticipated challenges".

In a response to Calcalist's request for comment, an Intel spokesman said the company does not comment on matters relating to its customers.

The news follows one analyst's prediction last week that Apple could choose to use modems manufactured by MediaTek instead of Intel in future iPhones.

Northland analyst Gus Richard gave no timeline for the predicted switch, but with deals for 2018 iPhones already established, any impact was expected no earlier than 2019.

Apple added Intel as a manufacturer only a couple of years ago, after previously relying solely on Qualcomm for its modem chips. Current iPhones use LTE chips from both companies, but Apple is embroiled in a lawsuit with Qualcomm and is rumored to be planning to ditch their chips, too.

Apple is believed to be developing its own modem chips, but it will need to continue to use third-party chips until its in-house solution is ready to be deployed in iOS devices.

Current rumors suggest Intel will supply approximately 70 percent of LTE chips for Apple's 2018 lineup, with the rest of the chips coming from Qualcomm.

Apple is also moving away from Intel chips in its Mac lineup, with rumors indicating the company is developing its own custom chips that could appear in Macs as early as 2020.

Update: In response to this story, Intel told MacRumors the company's 5G customer engagements and roadmap had not changed for 2018 through 2020. "We remain committed to our 5G plans and projects," said a spokesperson.

Article Link: Intel Reportedly Halts Development of 5G Modem After Losing Orders for 2020 iPhones

 

[44267547]

I look forward to when Apple actually has their own developed modem chips, that way they don’t deal with all the inconsistencies with Intel and Qualcomm Over the years.

 

[calstanford]

Intel has never been passionate about Mobile. They got out of ARM when their strongARM processors powered the first PocketPCs (dumb) and are getting out of modems now that next gen networks are coming out.
Sitting on their non-improving x86 forever can't be a way forward for intel, but I guess that's what they're choosing to do. Good luck to them.

 

[throAU]

Another non-x86 based product, another failure.

ah, intel...


edit:
and right now, x86/x64 intel is being exposed as being a complete and utter shambles from a security point of view. so many dodgy hacks and shortcuts for performance at the expense of security...

 

[fokmik]

So , welcome mediaTeck

 

[Abazigal]

Just as Apple made them, so too can Apple break them.

 

[PickUrPoison]

Apple is also moving away from Intel chips in its Mac lineup

No. But Apple might also be; or, may also be; or, could also be...

 

[0248294]

Intel has never been passionate about Mobile. They got out of ARM when their strongARM processors powered the first PocketPCs (dumb) and are getting out of modems now that next gen networks are coming out.
Sitting on their non-improving x86 forever can't be a way forward for intel, but I guess that's what they're choosing to do. Good luck to them.

They did give mobile processors another shot by offering Atom SoCs in smartphones, like in the ASUS ZenFone 2... it never took off either, ARM's stranglehold on the mobile market can't be thrown over by x86-64 tech I suppose.

 

[TimmeyCook]

Hope this is fake.

This would be bad for Intel, Apple and the American technology sector.

Also, never heard of the source and the report isn’t echoing anywhere else either.

 

[jayducharme]

Given their experiences with Motorola, IBM, Qualcomm and now Intel, it’s no wonder Apple would rather make their own chips and be in control of their own tech. That’s been working out well for them with the iPhone, which has its own successful closed ecosystem. But with PCs, interoperability and compatibility are more important. I’d be concerned about reverting to the problematic ‘90s Apple, where your desktop worked only with an Apple keyboard and an Apple printer, etc.

 

[Smeaton1724]

Short sighted move by Intel, halting anything to do with the mobile space is to their long term detriment. They're happy with x86/x64 in a world that is turning ARM and mobile.

 

[HiRez]

This would be bad for Intel, Apple and the American technology sector.

I don’t see how it’s bad for anyone except Intel.

 

[Scooz]

Apple themselves building something that has to be reliable? In 1. gen? Oh my.

What happened to diversification as a means to limiting risks, btw?

 

[TimmeyCook]

I look forward to when Apple actually has their own developed modem chips, that way they don’t deal with all the inconsistencies with Intel and Qualcomm Over the years.

Yes, that’s Tim Cook’s plan.

Stop financing R&D that will end up in Androids 6 months later.

PowerVR was just an example, it was enabling Samsung Exynos chips.
[doublepost=1530785871][/doublepost]

I don’t see how it’s bad for anyone except Intel.

That’s because you didn’t factor in that MediaTek is synonymous of crap on Android, and it’s a Chinese company.

 

[Mascots]

That’s because you didn’t factor in that MediaTek is synonymous of crap on Android, and it’s a Chinese company.

Everyone says this as if Apple hasn't built and destroyed companies around their specific high standard needs.

 

[mlody]

I am still pissed that Intel and cable companies cant fix the issue with Puma 6 chipsets. Another reasons to avoid Intel.

 

[H2SO4]

I look forward to when Apple actually has their own developed modem chips, that way they don’t deal with all the inconsistencies with Intel and Qualcomm Over the years.

I'd much rather look forward to when Apple uses the best on the market. Who cares if they make them in house? You can't be the best at everything.

 

[Fandroid killer]

Apple has informed Intel that it will not use the chipmaker's 5G mobile modem in its 2020 iPhones, according to a new report.

Israeli website CTech by Calcalist reported on Wednesday that it had reviewed internal communications from Intel and spoken to "people familiar with the matter", leading it to conclude that Intel will not provide the 5G modems for Apple's 2020 mobile devices.

Calcalist said the communications it had seen described Apple as the "key mobile customer" and the "main volume driver" for the "Sunny Peak" 5G mobile modem, underlining the impact the loss of business would have on the chipmaker.

Apple was also said to be facing a "massive effort" to launch 5G in its mobile products, with Intel executives blaming the company's decision not to use its modems on "many factors", including the introduction of a faster WiGig (802.11ad) Wi-Fi standard, which brought "new and unanticipated challenges".

In a response to Calcalist's request for comment, an Intel spokesman said the company does not comment on matters relating to its customers.

The news follows one analyst's prediction last week that Apple could choose to use modems manufactured by MediaTek instead of Intel in future iPhones.

Northland analyst Gus Richard gave no timeline for the predicted switch, but with deals for 2018 iPhones already established, any impact was expected no earlier than 2019.

Apple added Intel as a manufacturer only a couple of years ago, after previously relying solely on Qualcomm for its modem chips. Current iPhones use LTE chips from both companies, but Apple is embroiled in a lawsuit with Qualcomm and is rumored to be planning to ditch their chips, too.

Apple is believed to be developing its own modem chips, but it will need to continue to use third-party chips until its in-house solution is ready to be deployed in iOS devices.

Current rumors suggest Intel will supply approximately 70 percent of LTE chips for Apple's 2018 lineup, with the rest of the chips coming from Qualcomm.

Apple is also moving away from Intel chips in its Mac lineup, with rumors indicating the company is developing its own custom chips that could appear in Macs as early as 2020.

Article Link: Intel Reportedly Halts Development of 5G Modem After Losing Orders for 2020 iPhones

This is the best decision apple has made in the past FOUR years! This is coming from a once die hard apple fan who switched to android because of the lack of innovation from apple.

What this news means:
In House development will bring Faster innovation!

Intel has been the cause of slow innovation especially in the mac lineup and mobile as well. Intel was the only source of competition for Qualcomms chips yet they were so slow to adopt, apple kept delaying and yes slowing Qualcomms chips just so it could be on par with intel. All the customers who were aware of this were purchasing Verizon specific phones just for the speed bumps and signal quality. I've owned a 2011 macbook pro and haven't had a reason to upgrade after 7 years! That has to say something!

With more companies and startups going mobile, including apple's in house development of chips, hopefully competition will increase and this will drive faster innovation.

 

[elvisimprsntr]

Here is one reason Apple is likely not using Intel 5G modems. Still requires separate 4G modem in the same device.

Pairs with LTE modems such as Intel’s XMMTM7360 LTE modem to provide 4G fallback, and 4G/5G interworking

Source: Intel

The other is 5G is more about fixed wireless broadband. At the frequencies 5G operates at, you basically have a microwave oven in your pocket or heald up to your head. Not to mention, you basically need direct line of sight as those frequencies do not penetrate building materials, plants, moisture, go around corners, etc. You think rain fade is a problem with satellite TV, just wait.

Source: Link

Seems the real benefit of 5G to consumers is off loading current 4G fixed wireless broadband to free up bandwidth for existing mobile 4G devices.

 

[Xgm541]

I look forward to when Apple actually has their own developed modem chips, that way they don’t deal with all the inconsistencies with Intel and Qualcomm Over the years.

I read that patent royalties are the real issue here, where it's cheaper and makes more sense to offload sourcing to a 3rd party. Hopefully future mobile technologies are not as difficult to work with.

 

[Robert.Walter]

Intel... cutting its way to prosperity one self inflicted dumb decision knife wound at at time.

I will be glad when Apple is free from this clown car of strategic planning and commitment.

 

[Ronlap]

Short sighted move by Intel, halting anything to do with the mobile space is to their long term detriment. They're happy with x86/x64 in a world that is turning ARM and mobile.

Just like Microsoft riding Windows and Office into the gutter before Ballmer departed.

 

[Andres Cantu]

So I guess this means no 5G until late 2020, a year and a half after Android. Not shocking, LTE was late also, but it sucks that more than likely the 2019 model won’t have 5G.

 

[FFR]

So I guess this means no 5G until late 2020, a year and a half after Android. Not shocking, LTE was late also, but it sucks that more than likely the 2019 model won’t have 5G.

Thought 5g was launching in 2020.

 

[dominiongamma]

So I guess this means no 5G until late 2020, a year and a half after Android. Not shocking, LTE was late also, but it sucks that more than likely the 2019 model won’t have 5G.

Well remember when 4G came to the market and android did it first? There weren’t enough towers at the time and battery was awful then because of 4G when it launched.