Moscow, may 16 — “News. Economy” Apple is developing its own 5G modem that will be used in future smartphones to connect to cellular networks of the fifth generation. However, according to the news site the Information citing insiders at Apple’s own 5G modem would not be ready before 2025.
For 5G networks — the future of the mobile industry. Bandwidth 5G higher than that of LTE, and it means that simultaneously use the network more people, apps, smart devices, etc. According to forecasts of the American analytical company IDC, by 2025 the world will be over 150 billion devices connected and generating data in real time. For their work will require new network infrastructure with high bandwidth, so in the future play the main role of mobile networks 5th generation.
Most analysts agree that the mass introduction of 5G will begin in early 2020, so Apple needs to urgently solve the problem with the supply of modems. Intel was seen as the sole provider of 5G dongle for iPhone 2020 model year, but the company did not have time to provide samples of the chips in time.
In April of this year, Intel decided to roll the business on the development of 5G modems. Intel has been working on its own 5G modem to supply Apple, but despite a partnership with the Creator of the iPhone, the unit experienced difficulties with profit. “The company will continue to fulfill current obligations to customers in respect of the existing range smartphone 4G modems, but has no plans to release 5G modems for smartphones, including those that were previously scheduled for release in 2020”, — reported in a press release Intel.
In a press release, Bob Swan noted that, despite the prospects that are opened in the 5G field, in the business of designing modems for smartphones there is no clarity as to when these developments will pay off and will bring the company profit.
Since Intel abandoned development of 5G chips for smartphones, Apple will use Qualcomm technology for the development of devices with 5G technology. However, this does not mean that Qualcomm will be the sole supplier of Apple, as the latter always considering several manufacturers.
There is a possibility that Intel could put their modem unit for sale. The site The Information published the following statement by Intel: “we Have the technology 5G modems world-class, which have very few companies, in terms of intellectual property and experience. That’s why many companies showed interest in acquiring our assets associated with cellular modems since the recent announcement that we are evaluating possibilities for the implementation we created intellectual property.”
According to sources, The Wall Street Journal, the purchase of a business producing modems became interested in Apple. According to the informants edition, Intel asked the Bank Goldman Sachs to help to streamline the process of selecting and analyzing the best deals. This process is still at a very early stage, said the sources.
Prior to the signing of the settlement with Qualcomm in the media rumors that the chips 5G “Apple” company can buy from Chinese Huawei. A Huawei representative confirmed that the company is considering delivery of mobile chips 5G own designs to other companies involved in the production of smartphones, in particular Apple. This approach will affect the changes in strategy, as earlier the Chinese manufacturer did not intend to sell 5G chips to third-party developers.
However, a trade war between the US and China is still not complete, so Apple decided not to risk relations with the US authorities, even if the Huawei modems will be used only in smartphones for the Chinese market. In addition, last summer the administration trump launched a campaign aimed at persuading its European allies to boycott the products of Huawei in its Telecom networks.
In the short term, provider 5G modems for Apple will be Qualcomm. Copertina promised to resume the purchase of modems for smartphones as part of a settlement agreement entered into in April 2019, which will help to stop litigation associated with patent infringement. The agreement will remove all restrictions on the sale of Apple devices around the world. The company signed a new six-year license agreement, in force since April 1, 2019 in addition, Apple agreed to pay Qualcomm monetary compensation, the amount of which was not announced.
Litigation between the companies began in 2017, when Apple has sued Qualcomm over inflated, according to the plaintiff, the licence fees for the use of patents. After that, Qualcomm filed a series of counterclaims, accusing the manufacturer of smartphones by that time switched to Intel processors in the theft of technology.
In court Apple and its supplier Foxconn, Pegatron, Wistron and Compal Electronics has estimated its damages in the amount of up to $27 billion the Company claimed that Qualcomm many years of inflated prices for the use of the chips.
Qualcomm accused them of cessation of payment of royalties for the use of patented technologies. Chip maker estimated its damages in the amount of at least $15 billion in addition, in July, Qualcomm has accused Apple of violating patents related to battery life, Apple responded with a counter lawsuit, claiming that the Snapdragon processors infringe Apple’s patents.
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