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Why Apple is in no hurry to integrate the 5G on the iPhone

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Published on Aug 23, 2018

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After years of investment and work, the 2018 will be the year of the final launch of the networks first 5G on a large scale, while the first smartphone compatible with this technology will be launched in 2019. Apple, however, does not seem to be interested in this race and the first iPhone to incorporate the 5G might arrive only in 2020. Here's why.

Anyone who knows even a little about the history of Apple knows that the company has never had to hurry to use new technologies just come out on the market. Almost always, Apple has preferred to wait until the times were ripe before to optimize a new technology and make it available on their devices. The same will happen with the 5G.

Technology 5G ensures several advantages in terms of speed of download and upload, but also in terms of latency. The first problem, however, is that the coverage is still very low and it will take at least a couple of years because the 5G is beginning to cover an adequate number of users worldwide.

In addition, there is also a problem of costs. Companies such as Qualcomm, Nokia, Ericsson and Huawei have invested billions of dollars and years of research and development to complete the implementation of the standard 5G, and for this they will need to recoup their investment by charging a savoury licensing fees to manufacturers of smartphones that use this technology.

According to VentureBeat, the total cost of the license for the use of the technology and 5G could exceed $ 21, compared to an average cost of 9.60 dollars for the 4G devices. For Apple, the additional cost of the sun licensing fees – excluding the costs of the components to integrate the 5G – could strongly weigh on the sales of the iPhone. In a market increasingly complex and difficult, Apple needs to increase its profits on the sale of every iPhone, and at the same time to increase its presence in the market, such as China and India. And increase the price, or end up with profits lower, this is certainly not a solution.

Among other things, a large part of the cost of the license should be paid to the Qualcomm with which Apple is fighting a legal battle that has lasted several months.

In two years things could be completely different, both with regard to global coverage, both for the costs that will be definitely lower.

Link to the original article: Why Apple is in no hurry to integrate the 5G on the iPhone

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