25 February 2019
Apple has stated that it will not be using Intel’s 5G modems for the 2020 iPhones, according to a new report.
Intel’s internal communications and "people familiar with the matter" has revealed that Intel will not provide the 5G modems for Apple's 2020 mobile devices.
The report notes, Apple has notified Intel it will not use a mobile modem developed by the chipmaker in its next-generation mobile device, Intel executives said in the communications. Further development of the modem component internally called "Sunny Peak" is halted and Intel's team working on the product will be redirected to other efforts, the executives said.
Apple has been described as the "key mobile customer" and the "main volume driver" for the "Sunny Peak" 5G mobile modem, and the loss of orders for 2020 modems is going to impact the revenues of Intel considerably.
An Intel spokesman stated that the company does not comment on matters relating to its customers.
Last month, one analyst had stated that Apple could choose to use modems manufactured by MediaTek instead of Intel in future iPhones. Northland analyst Gus Richard had not given a timeline for the predicted switch; however, with the deals for 2018 iPhones already in place, only deliveries after 2019 are likely to be impacted. Apple is also working on its own modem chips, however, it will be some years before the company starts using them in its iPhones.