Apple fails to develop 5G chips after buying Intel business for $1 billion

At the end of June 2022, it became known about Apple's failed attempts to develop its own so-called baseband chips, which are designed to connect mobile devices to cellular networks. The American company wanted to be independent of suppliers of such chips and for this purpose the corresponding assets of Intel were acquired for $1 billion.

A survey I recently conducted showed that Apple's project to develop its own 5G modem for the iPhone apparently failed, so Qualcomm will remain the exclusive supplier of 5G chips for the new iPhones, which will be released in the second half of 2023. Qualcomm will supply 100% of such chips, while 20% was previously expected, "TF International Securities analyst Ming-Chi Kuo wrote on his Twitter blog at the end of June 2022.

Apple fails to develop 5G chips after buying Intel business for $1 billion

This expert is known for having sources in the supply chains of Apple electronics and components for it. Min-Chi Kuo has repeatedly given accurate forecasts about the timing of the release of new products of the company.

Ming-Chi Kuo claims that Apple has not yet created its own 5G modem for smartphones and will use Qualcomm solutions for at least another year. According to CNBC, citing court documents released as part of the proceedings between Apple and Qualcomm, the latter will supply 5G modems for the iPhone until 2024. The agreement assumed that Qualcomm would not be the only supplier of such chips, however, judging by the latest information from the analyst, Apple has no alternative by the end of June 2022.

According to 9to5mac, Apple's desire to create its own 5G modem for the iPhone is due to the company's desire to increase performance and reduce power consumption of such chips, as well as save on product purchases from Qualcomm or other post-buyers.^[1]

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