Apple has reportedly dropped Intel from its 2020 device lineup, and the company’s upcoming 5G modem codenamed Sunny Peak no longer has a home.
Sunny Peak was a combined 5G, Wi-Fi, and Bluetooth device and the same documents claim Intel will attempt to rework Sunny Peak for inclusion with Apple’s 2022 device family.
With IoT expected to emerge as a key driver of 5G, there are certainly other business segments Intel can sell into — but the prestige, volume, and price premiums of an Apple design win are not fungible with, say, powering the next iteration of FitBit, smart sensor, or even a device like the Microsoft Surface.
In late June, Northland analyst Gus Richard wrote that Apple might try to replace Intel modems with Mediatek devices while it also works on its own 5G solution.
Whether the “Apple wants to go entirely ARM by 2020” rumor is true or not, it likely has little bearing on the company’s modem development or 5G product plans.
The larger question here is how much damage losing Apple in 2020 will do to Intel’s 5G business and overall plans.
But if the Apple 5G win was expected to provide critical momentum or licensing revenue for a major fight with companies like Qualcomm, Mediatek, and Samsung for 5G revenue and market share as that industry heats up, Intel may have a larger problem on its hands.
Done Katch’ng up but want to read more? Read more here.