Apple would not be ahead of the curve with its 5G modems, and there would still be a lot of work to do before they equip its iPhone. It means that Tim Cook’s firm will be dependent on Qualcomm in the meantime.

Apple’s 5G modems will take time to get up and running

Qualcomm can plan for the medium term with Apple without too much hassle. Indeed, the American firm is not yet ready to design its 5G chips. And it will take a lot of patience since Apple’s 5G modems will not be available until 2025. Until then, Qualcomm will still be Apple’s leading supplier.

How can such a delay be explained? The American site The Information, which made a lengthy investigation, articulates it by the divorce between Intel and Apple, and a calendar that has evolved following this event.

The Information site states: “In interviews with potential team members, Apple told engineers that they expected to have their modem ready by 2025. It will, therefore, be necessary to wait to see the arrival on the market of iPhone fully equipped by Apple.

An alternative to Qualcomm that is slow to come

In the meantime, the first iPhone with 5G integration should be available next year. It is made possible by the agreement signed between Apple and Qualcomm after years of a legal battle. It should be noted that this arrangement is planned for 5 years, the period necessary for Apple to produce its own 5G chips.

It should be recalled that the dispute between the two parties lasted two years: Apple blaming Qualcomm for abusing its dominant position to gain greater financial margins, and Qualcomm considering that Apple was not meeting some of its contractual commitments.

The fact that the two companies have found an arrangement is therefore rather a surprise, even if Apple had planned a plan B with Intel to become its modem supplier. The negotiations had finally not been successful, and Intel preferred to redirect its strategy towards its historical activity, namely processor design.

U.S. Attorney General Matthew Whitaker at a press conference on Monday, January 28, 2019.

13 charges were unveiled on Monday, January 28, by the U.S. Department of Justice. Washington accused the Chinese telephone giant, in particular, of having tried to circumvent the sanctions against Iran.

According to the indictment, Huawei deceived an international bank into making millions of dollars in transactions with Iran. The Chinese telecom giant is also accused of trade secret theft, electronic fraud, and obstruction of justice.

U.S. authorities accuse Huawei and its subsidiaries of offering bonuses to workers who steal confidential information from companies around the world. The American justice system mentions as proof an email sent to Huawei employees, offering them bonuses in exchange for stolen data.

Type of formal notice

Behind Huawei, the Acting Secretary of Justice is sending a warning to the Chinese authorities. “China must be responsible for ensuring that its citizens and businesses comply with the law,” said Matthew Whitaker. A kind of formal notice, issued on the eve of the arrival of the Chinese Vice-Premier in Washington, who will meet Donald Trump on Wednesday.

Optimistic, the Treasury Secretary said he expects “significant progress” in the trade negotiations between the two countries.

Huawei claimed to be “disappointed.”

For his part, Huawei dismissed on Tuesday, January 29, the charges announced by the U.S. Department of Justice against the company, denying that he had committed any theft of technology or violation of sanctions against Iran.

“Huawei is disappointed to learn of the charges brought against the company today,” the company told Agence France-Presse. “The company denies that it, or any of its subsidiaries or affiliates, committed the alleged violations of U.S. law set out in each of the indictments. We are not aware of any wrongdoing on the part of Ms. Meng and are confident that the U.S. courts will reach the same conclusion,” she said with reference to her CFO, currently being held in Canada and facing extradition to the US.

The trade war has just started between these two.