Apple Won't Use Intel's 5G Chips

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According to "people familiar with the matter", Apple just took the decision not to use Intel's Sunny Peak in its 2020 devices. "We remain committed to our 5G plans and projects".

Intel has for the last several years been winning business away from Qualcomm (QCOM), and there has broadly been speculation Intel's parts will win the vast majority of share in the iPhone models expected out this fall, though that is not certain.

Intel has reportedly halted development of its new 5G mobile modem after Apple decided not to place orders for future iPhones.

An in-house 5G chip, created with Apple's own technology, could possibly help Apple with its feud with Qualcomm, in which Apple is suing Qualcomm over what Apple claims is exorbitant royalty fees.

If Apple makes good on both plans, Intel could be in for a real bruisin'.

Intel had hoped to secure a partnership with Apple to supply "Sunny Peak" chips for its 2020 iPhone lineup, but according to internal communications and "people familiar with the matter", Apple has made a decision to shop elsewhere.

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Although 5G chips in smartphones will be available in 2019, network adaptation is a bit slower, so large-scale rollout of gigabit speeds is expected in 2020. Reports earlier this year suggested Apple was looking to shift its MacBook range from Intel's x86 processors to ARM-based chipsets of its own design, extending the expertise it has developed in making custom silicon for iPhone and iPad.

Kuo also expects that the 6.5-inch iPhone 11 Plus - or whatever Apple calls the larger sequel to the iPhone X - will come in three colors: black, white, and gold. However, it does beg the question that if not Intel then what.

On the other hand, designing your own chips and getting them mass produced in the quantities that Apple needs is not an easy thing, either.

Still, all of this is another cloud hanging over Intel's head as its board searches for a new CEO, after Intel's former CEO Brian Krzanich, suddenly and unceremoniously resigned.

It's said to have had a huge impact on Intel's modem strategy overall.

Apple did immediately responded to a request for comment.

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