Qualcomm 'Running Out' of Time to Win 5G Modem Orders in 2020 iPhones Amid Legal Battle With Apple

[MacRumors]

Qualcomm may be running out of time if it wants to supply Apple with 5G modems for its 2020 iPhones as some rumors suggest.

In a research note today, analysts at investment bank Barclays said that while they originally thought Qualcomm had an opportunity to supply the 5G modems to Apple, they now believe that time "seems to be running out" unless the two companies can settle their bitter legal battle in the next few weeks.

Back in November, it was reported that Apple will tap Intel as its 5G modem supplier instead, but Barclays analysts believe that the modem design for 2020 iPhones "needs to be set now," and that the expected late 2019 availability of Intel's first consumer 5G modem "does not work with Apple's timeline."

Apple recently testified that it held conversations with Samsung and MediaTek as potential alternative suppliers, but it's unclear if those companies would be able to meet Apple's production, performance, and cost demands.

Apple is also reportedly working on its own cellular modems, but research and development appears to be in the early stages.

Last week, Intel confirmed that it expects the first consumer products embedded with its 5G chips to be released in 2020, the same year Apple is rumored to release its first 5G-enabled iPhone, enabling faster data speeds.

Article Link: Qualcomm 'Running Out' of Time to Win 5G Modem Orders in 2020 iPhones Amid Legal Battle With Apple

 

[Baymowe335]

QCOM is screwed.

 

[rjohnstone]

QCOM is screwed.

How?
Seriously... they supply modems to a large number of other device manufacturers.
I highly doubt they had an Apple order factored into any financial forecasting given the current situation.

 

[G5isAlive]

QCOM is screwed.

Actually, I think it's consumers that are screwed. And Apple, but Apple, right or wrong (and I think they are right) in the ongoing dispute, somewhat dug its own grave by not negotiating successfully up front and taking part in this situation at all. But yeah, what this means is Apple may not have 5G in 2020. Doesn't bother me we dont have it now. But 2020? Thats going to be a bitter pill.

 

[Baymowe335]

How?
Seriously... they supply modems to a large number of other device manufacturers.
I highly doubt they had an Apple order factored into any financial forecasting given the current situation.

How much money do you think they make from Apple?

My point is, they should have never burned that bridge.

 

[StellarVixen]

I hope it will be Intel.


Then Qualcomm will be left crying and realize how pathetic they are.

 

[gotluck]

QC has the best modems

 

[CalvinBroadus]

QC modems >>>>>> Intel Modems
They're trolls for sure, but they make some damn good modems. Intel's are crap in comparison.

 

[mcbird32]

Is this a joke? Does anyone really think Qualcomm has a shot at making the next iPhones' modems?

 

[lazard]

lose lose situation. Qualcomm misses out on potential business and Apple is stuck using crappy Intel modems.

 

[MadDawg2020]

How?
Seriously... they supply modems to a large number of other device manufacturers.
I highly doubt they had an Apple order factored into any financial forecasting given the current situation.

And Apple is not a small player in this game- Qualcomm will lose in sales on this one.

 

[Marcus PM]

Oh well.

 

[Malcster]

I really hope they can work this out.

When you pay iPhone prices for a smartphone you should get the best modems (which are, unfortunately, QC) intel are very poor in comparison.

 

[rjohnstone]

How much money do you think they make from Apple?

My point is, they should have never burned that bridge.

I'm sure they made plenty in the past.
But that doesn't impact future forecasting. Apple is not factored into any current production schedule, so QCom hasn't lost anything on 5G modem orders.
Apple and Qualcomm will eventually settle their differences and move forward, just like Apple and Samsung have done.
Apple wants the best components in their devices (hence the move to Samsung AMOLED screens).
Once the legal issues are dealt with, Apple will likely strike a new deal with Qualcomm unless someone else makes a better modem.
Right now, no one else can match Qualcomm's modem quality. Apple is currently settling for "good enough" with Intel.

 

[MadDawg2020]

lose lose situation. Qualcomm misses out on potential business and Apple is stuck using crappy Intel modems.

More reason for Apple to go all in and just do it themselves - Intel has stiffed Apple many times in the past with delays in production-

 

[Sasparilla]

We'll see what happens, guessing it'll be Intel, wishing it would be Qualcomm. MediaTek? Yikes. The call on Samsung as an option is interesting - it shows what control Qualcomm exerts over the marketplace where Samsung who makes their own CPU's and (apparently) 4G/5G modems in their phones in the rest of the world has to sell their smartphones here in the U.S. with Qualy's hardware instead.

 

[69Mustang]

My point is, they should have never burned that bridge.

Maybe they shouldn't have burned that bridge (I personally don't think it's completely burned) generally speaking. But posting they're screwed on this topic implies they're screwed in relation to 5G modem orders. I don't think so. As @rjohnstone noted, they probably didn't factor Apple into their future numbers.

Regarding 5G, I think Apple has a little more to worry about because Intel. Intel never met a product timeline they couldn't conveniently ignore. The readiness of their 5G modem in 2020 has to be taken with a grain of salt. Even if - I doubt it - they managed to hit their 2020 timeline, that pushes their product's market readiness into late 2020 at the earliest. But this is Intel, so we know that means at least end of Q2 2021

I'm pretty sure Apple and Qualcomm will eventually come to some kind of detente and find a way to do business.

 

[lazard]

More reason for Apple to go all in and just do it themselves - Intel has stiffed Apple many times in the past with delays in production-

It would take them years, and even then it doesn't guarantee their modems will be on par with Qualcomm. Intel has been at it for a while and still can't do it.

 

[ilikewhey]

I hope it will be Intel.


Then Qualcomm will be left crying and realize how pathetic they are.

intel is so behind in 5g, the only ones left crying are consumers like you and me who have to buy 2020 iphone with sub standard 5g iphones.

 

[StellarVixen]

intel is so behind in 5g, the only ones left crying are consumers like you and me who have to buy 2020 iphone with sub standard 5g iphones.

Where is evidence for that?

It's like it happened with Intel modems in XS and XS Max, people complained and said how "Intel is crap and Qualcomm is superior to Intel", when it turned out in the end there is nothing wrong with Intel modem, and everything got fixed with software update.

 

[Tivoli_]

5G is still in its infancy. No need to rush into that bandwagon.

Any chance that Apple will make its own modem?

 

[dugbug]

It would take them years, and even then it doesn't guarantee their modems will be on par with Qualcomm. Intel has been at it for a while and still can't do it.

I would not doubt apple's abilities here. If they take this on it they can optimize the entire stack.

 

[jezbd1997]

I hope it will be Intel.


Then Qualcomm will be left crying and realize how pathetic they are.

Qualcomm has the best modems though, coverage has been no good on my iPhone 7 with the intel chip.

 

[rjohnstone]

5G is still in its infancy. No need to rush into that bandwagon.

Any chance that Apple will make its own modem?

Apple has a lot of catching up to do if they plan on making their own.
They still have to strike a deal with Qualcomm on patent licenses even if they chose to make their own.
You can't make a modern modem without using some of Qualcomm's patents.
Yeah, their covered under SEP FRAND licensing rules, but Apple will still have to acquire those licenses from Qualcomm.

 

[BMcCoy]

I forget... was there evidence that Intel modems were inferior to QCOM, or was it just anecdotal reports?