Apple In Trouble? Falling behind The 5G Network Race Against Competitors

Apple Inc.. Paris
Apple Inc.. Paris, Taken on October 14, 2013 (Photo: sabin paul croce)

The 5G network is the next technology upgrade for smartphones this year. Thus, reports surfaced that Apple will launch its first wave of 5G iPhones in 2020. This is long compared to its competitors. The tech giant usually comes late in adopting in the newer technologies as it waits for the standard to mature. 

Apple is previously reported to be ready for its 5G smartphone in 2020. However, a new report states that the company will have trouble getting sufficient components to give the consumers access to the 5G connectivity through its mobile devices. Also, it could translate to lack of tremendous 5G iPhone supply. It will then affect sales. The tech giant has four options to choose from but, according to Analysts, none of them is ideal, according to Wccftech.

Apple is currently in a difficult spot as the company relies just on eh Intel modems, according to Cowen. The chip manufacturing giant currently displeased the iPhone maker with regards to its progress on the 5G connectivity. Also, different have commented that there is just small chance for the tech company will get in touch to Qualcomm in the near future. Thus, Matthew Ramsay, an analyst said that "Our industry contacts at MWC remained as surprised as we are that Apple is in this situation."

As follows, Cowen wrote that the first option of Apple is to launch 18 months after the 5G competition with a lesser from Intel most likely without that mmWave capabilities. He's referring to the band of spectrum that is able to be used for the 5G's high-speed wireless communications, according to Bloomberg.  

Cowen added that another option is to "source a 5G modem from chief competitor Samsung," Cowen wrote, though it added that would likely come only on "tough commercial terms." He added that using Huawei's 5G modem is an "off the table as an option. As for the MediaTek, the stack is too far behind in term of the timeline. 

Thus, Apple could also settle the company's disputes with Qualcomm and revert back to its modems. But Cowen asked that it might be too late already. The two firms have been battling with each other with the surrounding patent infringements. 

In line, the company's fourth option is to purchase Intel's modem business. The company will then develop internally the necessary components. Cowen wrote that it will be a reasonable but expensive long-term solution. It would also be very difficult against a 2020 timeline. 

Meanwhile, the shares of Apple have gained more than 20 percent coming from a January low, that followed a lower sales forecast. Last Monday, the iPhone maker closed at its highest level since early December. However, it still remains 24 percent below a record hit in October.  Thus, rumors spread that it is because of the lesser demand for iPhones. Hence, analysts have been hoping that a 5G version may help the company with sales.

© 2019 Business Times All rights reserved. Do not reproduce without permission.
Sign Up for Newsletters and Alerts