With Apple and Qualcomm fighting over patent disputes and rumors Apple might ditch its chips altogether, Intel was seemingly in a good position to scoop up more iPhone business by becoming the sole provider of modem chips for future iPhones.
Apple and Qualcomm might be entangled in lawsuits and jeopardizing their relations, but the Cupertino company is reportedly looking to drop Intel as a chip manufacturer as well.
The report details that there is a "massive effort" inside Apple to launch 5G products and says that the company's decision to not use an Intel 5G modem was a cumulation of "many factors". Citing people familiar with the development, the report claims that the chipmaker has halted the development of its Sunny Peak chip and redirected its engineers to work on other operations.
Reportedly, Apple has notified Intel that it will no longer use its mobile modem for its next-gen iPhone.
Sunny Peak apparently would have combined 5G, Wi-Fi, and Bluetooth into a single chip for use in upcoming iPhones, and Apple was expected to be its primary purchaser. The 5G chip is capable of transmitting data at up to 5Gbps, roughly on par with Intel's own 5G modems, which have theoretical peak peak data transfers of "over 5Gbps".
The third possibility for not wanting the hardware could be that Apple is planning to make its own hardware. But it's likely that the 5G phone business will begin to pick up speed in the coming years: Strategy Analytics recently said it expects the first 5G commercial handsets to go on sale starting in early 2019, but the firm also said 5G handsets will only account for 5% of global handset sales by 2021. "Intel expected Apple to be the "main volume driver" for the product, they said". The last thing it wants to do is have no part in the world's most valuable tech company, which sells hundreds of millions of iPhones and millions of Macs.