Apple might debut first in-house modem in 2021 as it questions Intel's ability to deliver ...
A report on Wednesday highlights Apple's struggles to obtain 5G modem chips for its flagship iPhone by 2020, saying increasingly tense relations with current supplier Intel might delay those plans. That might not matter, as the company is on track to build its own modems that could debut in 2021.
Intel's XMM 8160 5G modem.
Citing a source familiar with the matter, Fast Company reports Apple's rocky relationship with Intel is at a tipping point as the chipmaker has been missing development deadlines for its XMM 8160 5G modem. Apple has set cutoff points for sample chips in early summer, with a finished design due in early 2020, the report said.
The Apple-mandated deadlines are technically feasible if Intel makes good on its public pronouncements. In February, the firm said it expected to launch the XMM 8160 in the second half of 2019. Despite Intel's promises, Apple has "lost confidence" in the company's ability to manufacture the chip on time, the report said.
"As we said in November 2018, Intel plans to support customer device launches in 2020 with its XMM 8160 5G multimode modem," Intel said in a statement to AppleInsider.
For Intel, Apple's iPhone agreement -- a hard-fought win -- has become something of a conundrum. The job of managing Apple's project has changed hands three times, according to the source, and Intel stands to gain little from the deal in terms of immediate revenue due to negotiated terms.
The chipmaker accepted the contract to guarantee income as it makes upgrades to its chip fab, but Apple's demands are causing conflict within the company, the source said. Beyond development deadlines, Apple requires Intel to produce its modems first, putting high-margin orders on the back burner.
Apple might soon be free of Intel's internal strife, however, as the company is hard at work on its own in-house designed modem hardware.
According to the source, the Cupertino, Calif., tech giant has tasked between 1,200 and 2,000 engineers, including recruits from Intel and Qualcomm, to the modem project based out of a facility in San Diego. Fast Company speculates Apple's chip designs will be fabricated by current partner TSMC or past silicon collaborator Samsung, with an anticipated arrival date in 2021.
Today's report lines up with rumblings about an Apple-designed modem that have become louder over the past few months. Shades of the project were first seen in 2014 but rumors solidified late last year when Apple was said to be eyeing the area -- home to Qualcomm's headquarters -- as the cite of its modem development operation. More recently, the company reportedly shifted the modem program from Ruben Caballero, who reported to SVP of Hardware Engineering Dan Ricco, to SVP of Hardware Technologies Johny Srouji.
As for 2020, Apple has few options beyond Intel and supplier-turned-legal-enemy Qualcomm. Apple recently discussed near-term modem supply options with Mediatek and Samsung, but neither firm is in a position to furnish 5G chips for iPhone by 2020, the source said. That sentiment was echoed by UBS analyst Timothy Arcuri in a note to investors on Wednesday.
Considering Apple's ongoing legal struggle with Qualcomm, Intel appears to be the company's only viable source for 5G chips.
Updated with statement from Intel.
Intel's XMM 8160 5G modem.Citing a source familiar with the matter, Fast Company reports Apple's rocky relationship with Intel is at a tipping point as the chipmaker has been missing development deadlines for its XMM 8160 5G modem. Apple has set cutoff points for sample chips in early summer, with a finished design due in early 2020, the report said.
The Apple-mandated deadlines are technically feasible if Intel makes good on its public pronouncements. In February, the firm said it expected to launch the XMM 8160 in the second half of 2019. Despite Intel's promises, Apple has "lost confidence" in the company's ability to manufacture the chip on time, the report said.
"As we said in November 2018, Intel plans to support customer device launches in 2020 with its XMM 8160 5G multimode modem," Intel said in a statement to AppleInsider.
For Intel, Apple's iPhone agreement -- a hard-fought win -- has become something of a conundrum. The job of managing Apple's project has changed hands three times, according to the source, and Intel stands to gain little from the deal in terms of immediate revenue due to negotiated terms.
The chipmaker accepted the contract to guarantee income as it makes upgrades to its chip fab, but Apple's demands are causing conflict within the company, the source said. Beyond development deadlines, Apple requires Intel to produce its modems first, putting high-margin orders on the back burner.
Apple might soon be free of Intel's internal strife, however, as the company is hard at work on its own in-house designed modem hardware.
According to the source, the Cupertino, Calif., tech giant has tasked between 1,200 and 2,000 engineers, including recruits from Intel and Qualcomm, to the modem project based out of a facility in San Diego. Fast Company speculates Apple's chip designs will be fabricated by current partner TSMC or past silicon collaborator Samsung, with an anticipated arrival date in 2021.
Today's report lines up with rumblings about an Apple-designed modem that have become louder over the past few months. Shades of the project were first seen in 2014 but rumors solidified late last year when Apple was said to be eyeing the area -- home to Qualcomm's headquarters -- as the cite of its modem development operation. More recently, the company reportedly shifted the modem program from Ruben Caballero, who reported to SVP of Hardware Engineering Dan Ricco, to SVP of Hardware Technologies Johny Srouji.
As for 2020, Apple has few options beyond Intel and supplier-turned-legal-enemy Qualcomm. Apple recently discussed near-term modem supply options with Mediatek and Samsung, but neither firm is in a position to furnish 5G chips for iPhone by 2020, the source said. That sentiment was echoed by UBS analyst Timothy Arcuri in a note to investors on Wednesday.
Considering Apple's ongoing legal struggle with Qualcomm, Intel appears to be the company's only viable source for 5G chips.
Updated with statement from Intel.
Comments
Regarding a 2021 rollout of Apple’s baseband chip, it’s certainly possible if they started back in 2014 as rumored. But if the project only recently began in earnest, I don’t think 2021 is even remotely accurate. It’s a very heavy lift, and I don’t doubt there could be 2,000 engineers dedicated to making it happen. But it’s not a two year development timeline, even for the extremely competent Apple silicon group. Of course I could be wrong, those folks have surprised me more than once!
In short, that's Apple's mistake for cornering itself in relying on Intel for the modem chips while fighting Qualcomm. One has to ask why did Apple wait so long to ditch Intel to get into modem production rather than years ago? I don't see Apple going with a 5G modem by 2020 under such tight deadlines. More like 2021 or 2022, unless they resolve or clean up their disputes with Qualcomm or Intel quickly. Intel just got a new CEO recently so it's going to take some time for it to straighten out some of its issues. I don't think the modem quality is going to be that much different between ARM and Qualcomm's.
What you should be worried about is if Apple is going to put their own ARM or A-series ( not modems ) chips in their desktops which could get problematic from what I'm hearing on forums like here.
I knew at some point Apple would start making their own modems. Eve if there wasn't some Intel issues. Apple is creating more and more of their own chips. it started with the CPU, but they now have their GPU, and Battery Controller chip now I think, along with the W1 and H1 and T1 chips and whatever else I can't think of off the top of my head. It's a matter of time before you see APple switch to using their own processors in Mac's. Now sure how that will go with wanting to run Windows on your Mac with a A* CPU/GPU?!?! Or if people would want Apple's processor on any of the Mac Pro's.
It's all just a matter of time as Apple brings more and more in house.
Why put so much effort into making Apple happy for a year or two until they replace them anyway? According to the source that may be the Intel thinking.
Intel has been ignoring its customers for years, what with delays of the 10 nm node, and they surely want to have a modern modem for their notebooks as 5G gets built out. Not seeing Apple's demands as anything but beneficial to Intel. You know, the guys that dropped the ball on SOC's long ago.