As we all know that Huawei manufacture handsets and networking equipment. It will be the third largest smartphone company in the world in providing networking gear at the end of this year. You might not know that Huawei designs its own chips. Its Hi-Silicon unit is currently found powering up the Huawei Mate 20 Pro and the Huawei P30 series. It will also be used to drive the foldable Huawei Mate X. As Huawei designs the chips, but these are actually manufactured by TSMC.
Apple is relying on Intel to have its XMM 8160 5G modem chip ready for the 2020 iPhone models. But there are some conflicting reports that Intel will not deliver the component in time, and as a result, there are rumors that a 5G iPhone might not surface until 2021. Intel says it will ship the chip later this layer. But just in case if there is a problem, Apple has found an unlikely friend in Huawei.
As per the reports by Engadget, Huawei would consider selling its 5G Balong 5000 modem chips to Apple. The report also cites a source who has some knowledge of the situation. This is quite an unusual thing to consider, as an executive said earlier, “Balong is mainly for supporting Huawei’s smart products, such as phones and IoT products, and is currently for Huawei’s internal use only.” It is also very strange to consider that Huawei is looking to leapfrog over Samsung and Apple to become the global leader in smartphones by 2020.
Apple might turn to Qualcomm, but this unlikely to happen as both firms have been squaring off in court over the patent infringements, royalty payments, and antitrust claims.
It seems that Huawei would be open to selling Apple its 5G modem chips, but the question here is whether the gang in Cupertino would buy it or not. Tony Blevins who is the Apple supply chain executive has testified that Apple was considering to use 5G modem chips from MediaTek or Samsung for the iPhone. Although Apple currently uses the Intel chips for their handsets. This is the attempt of Apple to find the second supplier for modem chips. As Belvin noted, “No offense to (Intel) but we don’t want to be a single supplier with them. We wanted both Qualcomm and (Intel) in the mix.”
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