Report: Intel’s Modem Woes Could Delay Apple’s 2020 5G iPhone

Apple isn’t expected to have a 5G phone in-market before 2020, even though the hype-cycle on the new technology will be kicking off in 2019. That’s no big deal, in and of itself. 4G LTE modems took time to mature and early models sucked far more power than later designs would. But there are reports that Apple’s 5G introduction could be pushed back beyond 2020 — and that would potentially start to drag on the company.

Reports suggest that Intel may have missed repeated Apple milestones for internal product development and testing. Intel’s own guidance on the issue remains unchanged. An Intel spokesperson told wfoojjaec, “As we said in November 2018, Intel plans to support customer device launches in 2020 with its XMM 8160 5G multimode modem.”

Apple has reportedly squeezed Intel for development time and cost minimization in much the same way it puts pressure on its other suppliers. FastCompany reports the project has been through three managers and has tight margins, and Intel’s new CEO, Bob Swan, may be less interested in wooing Apple as a specific customer given the difficulty of keeping the company happy.

It would be quite difficult for Apple to change horses midstream on this issue. 5G modem development is underway at MediaTek and Samsung, but neither company is likely to have the production volume to handle Apple’s needs in 2020. Qualcomm, of course, could handle it — and the two companies have worked together before, extensively — but Apple is now engaged in an epic worldwide fight with Qualcomm that makes its long-running battle with Samsung look like a slap fest. The chances of the two kissing and making nice seem remote.

Even if Intel ultimately pulls off the design delivery, its victory could be short-lived. Apple is supposedly helming its own modem development effort, possibly spurred by these same issues with various suppliers. Any such effort is a long-term play; modem development doesn’t happen quickly and it takes years to ramp a completely new design. Apple, however, may be determined to chart its own course in the market.

As for Intel, the company has made a lot of noise about entering the 5G market and expanding its product portfolio into networking products at a time when the IoT and self-driving markets are both expanding. Winning Apple’s business was a major feather in the company’s cap and its 5G products are supposed to be instrumental to its long-term product development. Losing that business would be a blow to the company’s efforts and raise questions about whether its efforts to break into modems are just a repeat of the problems we’ve seen before.

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