The Information is out today with a detailed report on the falling out between Intel and Apple over the last few years that led to settling with Qualcomm, new specifics on Apple’s plans to make its own modems, and more.
The report highlights that Apple’s trouble with Intel dates back well before the recent issues with 5G modems. As told by an anonymous source to The Information, Apple’s VP of hardware, Johnny Srouji was very disappointed in Intel as it worked on modems for Apple in 2017.
These new details shed light on how long the strain between Apple and Intel had been in the making.
“This would have never happened at Apple under my watch,” Mr. Srouji barked at hisIntel counterpart, Venkata “Murthy” Renduchintala, during a meeting on Apple’s campus, according to the person, who was present at the meeting.
Just after Apple announced its settlement with Qualcomm, giving it access to its 5G modems for future iPhones, Intel announced it was exiting the 5G modem business, at least for smartphones. The WSJ late last month reported that Apple considered buying Intel’s 5G modem business, but that didn’t happen as it finally settled with Qualcomm. While Intel didn’t comment on Apple specifically, it did tell The Information that others have been interested.
We’ve heard over the last few months about Apple’s work on in-house custom modems. Before Apple 5G modem supply figured out, those efforts may have had more aggressive timelines, but now with 5G modem contracts secured for several years with Qualcomm, it sounds like it may be years down the road before Apple makes the switch. Apple is said to be telling potential employees that it’s shooting for 2025 for switching to its own modems in interviews.
The issues between Apple and Intel aren’t limited to modems. The report also notes that Tim Cook highlighted Intel chip constraints as holding back Mac sales in the company’s last earnings call.
Apple is expected to switch or at least begin to switch from Intel processors for its Macs relatively soon. Reliable Apple analyst Ming-Chi Kuo predicted Apple making the move between 2020-2021. Bloomberg also believes the transition will begin next year.
Check out the full story on Apple and Intel from The Information.