- According to Ming-Chi Kuo, Apple’s 2020 iPhone line of devices are expected to have 5G following the $1 billion Intel mode deal
According to Ming-Chi Kuo (an Apple analyst at TF International Securities) via MacRumors, Apple’s 2020 line of iPhones are expected to support 5G speeds, not just the new models. Offering broader 5G support is part of Apple’s plans to make iPhones more competitive against cheaper Android devices that have 5G support.
One of the catalysts for driving Apple’s 5G plan is the acquisition of Intel’s modem business for $1 billion. This acquisition brings 2,200 Intel engineers and 17,000 patents to Apple.
“We’ve worked with Intel for many years and know this team shares Apple’s passion for designing technologies that deliver the world’s best experiences for our users,” said Apple’s senior vice president of Hardware Technologies Johny. Srouji in a statement about the deal. “Apple is excited to have so many excellent engineers join our growing cellular technologies group, and know they’ll thrive in Apple’s creative and dynamic environment. They, together with our significant acquisition of innovative IP, will help expedite our development on future products and allow Apple to further differentiate moving forward.”
The acquired Intel patents range from protocols for cellular standards to modem architecture and modem operation. And Intel will retain the ability to develop modems for non-smartphone applications like PCs, IoT devices, and autonomous vehicles.
“This agreement enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created,” added Intel CEO Bob Swan in the deal statement. “We have long respected Apple and we’re confident they provide the right environment for this talented team and these important assets moving forward. We’re looking forward to putting our full effort into 5G where it most closely aligns with the needs of our global customer base, including network operators, telecommunications equipment manufacturers and cloud service providers.”
Even though Apple acquired Intel’s 5G business, the first iPhone with 5G is expected to have Qualcomm 5G models as part of a six-year licensing agreement that it signed with Qualcomm as part of a patent lawsuit settlement.
“We expect that the prices of 5G Android smartphones will decline to $249-349 USD in 2H20. We believe that 5G Android smartphones, which will be sold at $249-349 USD, will only support Sub-6GHz. But the key is that consumers will think that 5G is the necessary function in 2H20. Therefore, iPhone models which will be sold at higher prices have to support 5G for winning more subsidies from mobile operators and consumers’ purchase intention,” wrote Kuo in a report via MacRumors. “Boosting 5G developments could benefit Apple’s AR ecosystem.”
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