It appears that Apple’s (AAPL) decade-long partnership with Intel (INTC) is on the verge of collapse. The iPhone maker is apparently ditching Intel’s 5G modems in 2020 iPhones. This latest development has forced the McAfee’s parent firm to apply brakes on the development of its new 5G modems for Apple phones.
Apple has been gradually trimming its reliance on Intel. In April this year, there was news that Apple plans to have chips made by itself rather than Intel’s in its future Mac computers. And now, the Cupertino-based company is looking for 5G modems produced by some third-parties. According to CalcalisTech, Apple has informed Intel about its plans of not installing the chipmaker’s 5G mobile modem dubbed ‘Sunny Peak’ in its future iPhones.
This comes as a massive blow to Intel as Apple was the only primary customer for their 5G modems. Intel also believed that the iPhone maker would be the major driving force for ‘Sunny Peak’. But Intel is not giving up. If reports are to be believed, Intel is said to be working on improving its existing product, with a hope that Apple will turn to the Santa Clara, the California-based company for its devices in 2022.
There were rumors that Intel might lose the game to MediaTek. In June, analyst Gus Richard from Northland Securities told Bloomberg, that Apple’s future devices might have modems that are manufactured by MediaTek, a Taiwan-based semiconductor company.
Currently, Apple phones have chips that are being manufactured by Qualcomm (QCOM) and Intel. But Apple may even stop using Qualcomm chips due to the bitter lawsuit between the two. The tech mogul has been working seriously on chip research and creation and is also adding its co-processing chips in MacBook laptops and Mac desktops.