The latest generation wireless network can reach speeds as high as 1-gigabit speeds, about 100x faster than current speeds. According to Bloomberg’s Ian King, Scott Moritz and Mark Gurman, Apple has partnered with Intel for the wireless modems in its new phones, and the chip manufacturer doesn’t have a modem that can communicate at the new wireless speeds.
Qualcomm, an Intel competitor, does have chips currently available that can operate at the higher speeds, but Apple and Qualcomm are currently wrapped up in a legal battle over what Apple thinks is an industry monopoly by Qualcomm.
Apple currently plans to use both Intel and Qualcomm modems in the newest iPhone in order to limit its reliance on a single manufacturer. In theory, this means some phones will be able to run at the fast network speeds, but Apple will disable that feature in the Qualcomm equipped phones to ensure fairness and uniformity across all its devices.
Most major US carriers plan on launching the new gigabit speeds later this year, and Samsung’s Galaxy S8 is already equipped with the Qualcomm chip capable of utilizing the new network speeds, according to Bloomberg.
Apple shares had been relatively positive this week following the company’s developer conference on Monday.
Shares have erased those gains on Friday. Qualcomm shares have fallen .86% today while Intel is down about 1.5%.