Additionally, the performance of Intel’s first generation 5G modem may not match up to what Qualcomm has to offer by the time the first 5G “Intel In(ferior)side” iPhone is released in 2021.
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Qualcomm 'Running Out' of Time to Win 5G Modem Orders in 2020 iPhones Amid Legal Battle With Apple
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Additionally, the performance of Intel’s first generation 5G modem may not match up to what Qualcomm has to offer by the time the first 5G “Intel In(ferior)side” iPhone is released in 2021.
As always, one must consider the bigger picture, and look beyond phones.
The reality is, Qualcomm is struggling, and the main culprit is Apple.
https://www.wsj.com/articles/qualcomm-posts-loss-as-revenue-slips-1541628716
Qualcomm was clearly counting in increasing ASPs to improve their revenue (since their patents allow them to charge a company based on a percentage of the final price of their product), but Apple's decision to move to Intel has effectively eliminated that. This leaves them extremely reliant on Chinese manufacturers, who are known more for churning out budget handsets which would in turn earn them peanuts.
The truth is that Qualcomm has lagging behind since Apple embarrassed them with their 64-bit A7 processor, and Qualcomm has never really come close to catching up since then. Qualcomm's main contribution today comes in the form of 5G, and I fail to see how that in itself justifies their current licensing model.
This dip in revenue will only hurt Qualcomm even more as time goes on, because it in turn leaves them with even less revenue to channel towards R&D, which in turn means slower innovation of products, which means less money and so on.
It's not hard to see where this goes from here. Apple is gaining a significant amount of leverage over Qualcomm (because they now at least have an alternative in the form of Intel), and are simply buying time till they are ready to use their own modem chipset.
It's funny how the critics here are forever making Apple's competitors sound more powerful than they really are, but simultaneously playing down Apple's achievements and making them seem more lacklustre and inconsequential than they are. Truth is, Apple is waging war on Qualcomm's very business model, and in the process create a more competitive chipset market with lower standard-essential patent royalties and chipset prices. Even if you hate Apple to the max, this is a goal worth getting behind.
But no, just the thought of a slightly worse LTE modem on the iPhone is enough to make you all break formation and clamour for Apple to make up with Qualcomm.
Lastly, imagine a future Apple chip with their own custom processor, GPU and onboard LTE modem. The implications for their future wearables strategy is huge. There is no scenario where Apple goes back to Qualcomm. That bridge is burned (and Apple never burns their bridges until they have a viable plan B ).
Apple will be just fine. I would devote more energy to praying for Qualcomm if I were any of you.
These kinds of comments creep me out to no end. Corporate worship and treating them like they’re your friends.
Apple is the loser on this one...
If people start to understand this year's iphone do not have the "better modems" and have the inferior "intel modems" and no 5G they might wait it out or switch devices. I think it will damage the iPhone brand name...
This year iphone sales were less, next year maybe even less. Be careful of the downward spiral. Personally I don't care if I do not notice a difference, but a lot of customers out there are sensitive to such things this is why companies always brand this products as "BEST" or "TOP" or "#1"...
no company brands it products as "Just as good", "you won't feel a difference", "we can do it too" , "we are second best!"
If people start to understand this year's iphone do not have the "better modems" and have the inferior "intel modems" and no 5G they might wait it out or switch devices. I think it will damage the iPhone brand name...
This year iphone sales were less, next year maybe even less. Be careful of the downward spiral. Personally I don't care if I do not notice a difference, but a lot of customers out there are sensitive to such things this is why companies always brand this products as "BEST" or "TOP" or "#1"...
no company brands it products as "Just as good", "you won't feel a difference", "we can do it too" , "we are second best!"
i dont hate apple and i have no royalty to any brand, i make my purchase base on what works for me,
but i absolutely cannot stand these who makes blind allegiance to apple and overstate how other companies are SOL because they not doing business with apple, at the end of the day, apple is going to be fine without qualcomm, and qualcomm is not going to be bankrupt and close up shop for not doing business with apple.
apple will keep using the lesser reliable intel chip until they produce their own wireless chip, and qualcomm is still profitable from the upcoming 5g and all the android customers they have.
That's why they're opening a design center in San Diego just a few minutes away from Qualcomm. Between Qualcomm layoffs and poaching remaining engineers, it definitely looks like Apple is desperate to create a modem design group ASAP!
Reality is Apple is (or rather, was) one of Qualcomm's biggest customers, given that they sell the most expensive handsets. It's no surprise that their significant dip in earnings coincided with Apple deciding to stop paying them royalties. Qualcomm is not going to just close shop overnight (even blackberry is still limping around somewhere), but I believe this noticeable loss in earnings is going to impact them ultimately in terms of how much resources they can devote to further improving their own products (they have already pretty much lost the processor wars to Apple).
I also personally feel that the whole 5g story is overrated. There will come a point a point where the overall benefits of LTE start experiencing diminishing returns. For example, if my current connection is more than fast enough to let me stream Netflix, download an app or browse the web, what use would I have for a standard which is say, 10 times faster, when the bottleneck for netflix is no longer my download speed, but other factors such as data caps and my own ability to watch the content? Being able to stream a show 10 times faster is not going to let me watch it 10 times faster.
What this means is that we may soon see a scenario where the alternatives offered by other companies (Intel, Apple, Mediatek, Huawei, Spreadtrum, HiSilicon) start to have a viable chance, for the reason that they become good enough. Given the high value the US market represents from a dollar standpoint, one cannot discount this possibility.
fair point, the data cap on U.S carrier will deter many from even wanting 5G, i know i don't since i got a 24gb data cap by verizon, after that its 3g for me. but it's going to be pushed out anyway cause 5G is not just for phones, its for all IOT. of course thats for another topic.
there isn't really a processor war, since apple's chip stays in apple, it doesn't eat into qualcomm's market at all. at the end of the day both company will sell less products do to them not working together, apple might not be as hurt as qualcomm but losing potential profit is never good in stockholders' view. apple has its loyal fan who will buy anything apple puts out. and qualcomm has over 30 manuf signed up with them.
The iPhone 7 Plus uses Wifi modules from Murata, not Intel.
The iPhone 8 Plus uses Wifi modules from Murata, not Intel.
The iPhone XS uses Wifi modules marked as from Apple, but probably designed in cooperation with Murata, not Intel.
The Samsung Notes 9 uses Wifi modules from Murata, not Qualcomm.
So here is the kicker: Your Note 9 is using a Wifi module from the same manufacturer as Apple uses!
wishful thinking. chances are this is going to get dragged on for awhile and the last iphone i would buy would be the x.
Thank you, I feel the same way when I read those kind of comments. Obsessive brand loyalty is weird. I’ll never understand consumers who get protective and defensive regarding corporations who are ultimately just trying to make as much money as possible off of them.
Nobody even has the slightest idea what modem is in their phone or what a modem does. Nobody cares.
I think this thread proves your opinion false. When 5G becomes available for people (in 2020), more people will care if their phone has a 5G capable modem or not.
The people on this thread prove me right. This is the least representative group of people in the world. You think the 100 million people who buy iPhones every three months know anything about any of this? Of course not.
Holy cow. The people on this thread DO NOT prove you right. You said “nobody cares” about modems. There are people in this thread who care. Most in this thread care. You are incorrect.
“You think the 100 million people who buy iPhones every three months know anything about any of this?” First of all, I don’t think 100 million people buy iPhones every three months. Using 100 million as an arbitrary number in order to simplify things for you, then, yes, I think a good number of them care “about any of this (assuming that means modems, 5G, etc.).” No, I do not think all of them do. I wouldn’t even say a majority. But a good number do.
If you are trying to make a point different than what I am interpreting, then articilate better. Right now you are throwing out a bunch of “everybody’s“,”nobody’s”, “all”, “none” and “100%’s”. Those are “rarely” accurate/true (see what I did there?).