Apple Inc. could be forced to delay its 5G iPhone plans beyond 2020 as its main component supplier Intel Corp. looks like it will be unable to deliver the necessary modems on time.

A report from Fast Company, citing a person with knowledge of Intel’s and Apple’s relationship, said Intel is struggling to meet its deadlines for the development of its XMM 8160 5G modem. The modem is a vital component that Apple is relying on to add 5G capabilities to its 2020 iPhones, the report added.

Intel has apparently missed several deadlines already regarding the development of that chip, the report said, and Apple is fast losing confidence in its supplier.

Apple was hoping to launch its first 5G iPhones by September 2020, but in order to do so, it needs the first sample modems to be delivered for testing this summer, and a finished design to be made ready by early next year. Intel has previously said it will have its modems ready for shipping in 2020, but Fast Company said the delays in development mean it’s likely the company will miss that deadline.

The delay would put Apple in a quandary since it’s already late to the 5G game. Competitors including Samsung Electronics Co. Ltd., Xiaomi Corp. and Huawei Technologies Co. Ltd. have already launched 5G smartphones, so any further delay would put Apple two years behind its rivals.

Apple really has itself to blame, since it took a big risk by going all-in on Intel’s chips last year. That decision was made because of Apple’s ongoing legal struggles with its former supplier Qualcomm Technologies Inc., and saw it rely exclusively on Intel to supply modems for its 2018 iPhone XR, XS and XS Max models.

Analyst Patrick Moorhead of Moor Insights & Strategy said Apple’s decision to wage war with Qualcomm and not pay it for the intellectual property it’s using seems to have backfired, meaning it will be the last major smartphone company to deliver 5G capabilities.

“It appears that Qualcomm is very much ahead of the game in 5G,” Moorhead said. “If these rumors are true, we won’t see a 5G iPhone until 2021, which will only weaken Apple’s smartphone sales.”

Fast Company said the iPhone maker has held talks with Samsung and MediaTek Inc. to see if they could supply it with modems instead. However, neither company is likely to have a 5G chip ready in time for Apple’s 2020 target date.

Huawei does have the capability to supply Apple with the necessary chips. However, that option is off the table because of the U.S. government’s opposition to the Chinese firm. Apple is also unwilling to put aside its differences with Qualcomm, so that option is also a no-go, Fast Company said.

Apple’s troubles with its suppliers have pushed the company to start making plans to develop its own 5G modems in-house, but those chips won’t be be ready until 2021 at the earliest.

“Apple was going to be late to the 5G party in 2020 anyway, and now it looks like it will be even later,” said Holger Mueller, principal analyst and vice president of Constellation Research Inc. “Tim Cook’s mantra of not being first necessarily, but getting it right, does not matter so much when you are too late. With the headset refresh cycle trending to three years, this may put the even the most loyal of Apple fans in a bind.”

“But then again, headset vendors and network providers still have to show the consumer value proposition of 5G beyond the tech innovation cachet,” Mueller said.

Photo: Håkan Dahlström/Flickr