Apple Reportedly Wants to Have a Custom 5G Modem Ready for Use in Some Products by 2021
Apple yesterday announced that it has agreed to acquire the majority of Intel's smartphone modem business. The $1 billion transaction is expected to close in the fourth quarter of 2019, subject to regulatory approvals.
Understandably, the acquisition may enable Apple to accelerate development of its own 5G modem, with Reuters citing a source who claims the iPhone maker wants to have an in-house chip ready for use in some of its products by 2021, compared to previously reported timeframes of between 2022 and 2025.
Apple's transition to custom 5G modems will likely happen in phases, starting with lower-end and older models of devices, according to the report. Apple has a
multiyear chipset supply agreement with Qualcomm, and a six-year patent license agreement, so it certainly does not have to rush the process.
The report does not explicitly mention the iPhone, so the first product with an Apple-designed modem could very well end up being an iPad. In any case, the transition away from Qualcomm will likely take years, as its modems lead the industry in performance and worldwide compatibility.
In the interim, Intel is expected to supply LTE modems for 2019 iPhones, with Apple returning to Qualcomm for the first 5G-enabled iPhones in 2020.
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And, on topic, which company is "nice" when negotiating advantage?
[Apple told its sapphire supplier ‘Put on your big boy pants’]
(....and before the Apple Defense League minions jump down my throat: it's a joke, relax )
AKA, what does Apple have that Intel doesn't have?
I might be wrong, but while Apple was pretty much Intel's only customer for their modems, Intel's modems were still designed for the entire industry. When your only concern is that your own modems need only work with your own devices, as opposed to every other smartphone on the market, that gives engineers a lot more leeway on what they can do (and what they don't need to do).
So Intel's modems don't have to be strictly better than Qualcomm's. They simply need to do what Apple needs it to do, and between that and the hardware / software integration that Apple is famous for, they just might be able to trick out superior (or at least, comparable) performance.
In a sense, it's like how Apple was able to use its clout to push developers towards converting their apps to 64-bit, which meant their A-series processors no longer need to support 32-bit code, while Qualcomm's chips probably still do.