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According to BusinessKorea, global semiconductor manufacturers will release 5G modem chips, and a batch of 5G smartphones will be unveiled at the Mobile World Congress (MWC) on February 25, 2019.
On February 3, Apple registered a trademark called "Apple Vulture 5G" at the Dutch Benelux Intellectual Property Office (BOIP) to join the competition for 5G modem chips. The trademark has been classified as a mobile web service. The modem chip is characterized by the company's brand name and logo, the American flag and the vulture logo.
In order to compete for leadership in the 5G smartphone market, Apple decided to produce its own modem chip. Apple has been buying chips from Qualcomm until 2016. Since the patent lawsuit filed with Qualcomm last year, Apple has only purchased chips from Intel. Intel did not release the 5G chip until November 2018, and plans to start production in the second half of this year. Compared with Samsung Electronics and Qualcomm, the company produced 5G chips later. Apple has not announced when to release the 5G iPhone, while other major smartphone manufacturers plan to release 5G phones on the upcoming MWC.
For years, Apple has invested at least hundreds of millions of dollars to produce its own chips, but this development may ultimately benefit the company. Reuters pointed out: "Apple pays $3 billion to $4 billion a year for iPhone chips, and the cost per chip is between $15 and $20. To save space and extend battery life, Apple combines its own chips and processors. This will be beneficial."
Competition in the 5G chip market is likely to continue to intensify. Samsung Electronics released the multi-mode chip Exynos Modem 5100 in August 2018, and the Galaxy S10 will also be equipped with this chip. Earlier, Qualcomm released the Snapdragon X50, which was adopted by several companies including LG Electronics, Sony, HTC and Xiaomi. Huawei's foldable phone is expected to be powered by the Baron 5G01 chip developed by its subsidiary HiSilicon. Deloitte, a global consulting firm, recently predicted that sales of 5G chips will reach 1 million units this year.
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