Tim Cook

Wall Street analysts are worried that Apple is getting left behind in the 5G arms race.
Samsung and Huawei have launched 5G phones, but UBS thinks Apple won’t arrive at the party until at least 2021.
Apple’s legal fight with Qualcomm, spectrum issues, and pricing concerns are all thought to be holding the iPhone maker back.
But Apple’s sluggishness might not be a terrible thing. There are still issues with 5G and it may not turn out to be a huge innovation in the eyes of consumers.
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Apple is getting beaten in the 5G arms race — but some analysts believe that might not be a terrible thing.

5G is the latest generation of wireless mobile technology. It has already been rolled out in cities in the US and South Korea, bringing with it drastically increased speed. It is expected to reach and even surpass speeds of 1 gigabyte per second, which is 10 times as fast as standard 4G.

Samsung, Apple’s longstanding rival, has already released a fully-fledged 5G version of its Galaxy S10 phone in South Korea. Huawei, Apple’s other main smartphone rival, has also unveiled its own foldable 5G phone, the Mate X, which is set for release in mid-2019.

In recent weeks, attention has turned to Apple. So often at the cutting-edge of innovative new technology, the company is yet to announce a 5G phone of its own. Gartner thinks Apple won’t roll out a 5G phone until 2020, Bloomberg reported, while UBS claims it could be 2021 or later.

In short: Apple is behind the competition.

Supplier problems, legal woes, and pricing problems holding Apple back

So why is Apple being so slow to embrace 5G? There are several possible reasons. One concern is Apple’s current chip supplier, Intel. A recent UBS note on Apple said that “we do not believe Intel will be ready with a single chip backward compatible 5G modem.”

The note added that “it is widely known that Intel is not profitable with the modem that it sells to Apple, and with the recent CEO change, Intel may not pursue future development of the modem, especially if it believes Apple will eventually use its own modem.”

Intel’s issues are especially acute for Apple, given its ongoing legal battle with another chip maker, Qualcomm. The dispute concerns intellectual property theft: Specifically, accusations of Apple stealing trade secrets from …read more

Source:: Business Insider


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Why Wall Street is worried that Apple is getting left behind in the 5G arms race

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