Apple will struggle with 5G for years – analyst

Not only will Apple lag its competitors by at least a year in launching a 5G phone, it might still suck anyway according to a semiconductor analyst.

Bloomberg apparently got hold of a research note from Matthew Ramsay, who heads up the TMT semiconductor business at Cowen. He seems to reckon Apple has boxed itself into a corner by ditching Qualcomm as a 5G modem supplier and is now seriously short of good options in that area. He also expressed surprised that Apple has allowed this situation to develop.

Ramsay detailed four main options for Apple for 5G, but he doesn’t think any of them are great. The first is what is generally assumed: that Apple will launch 18 months behind the competition with an Intel 5G modem that is expected to be inferior and not even support mmWave. The recent MWC show saw the first 5G phones launched but Apple tends to announce new iPhones in September, hence the big lag.

Rubbish option number two is to see if anyone else can help Apple out on the modem side of things. But Huawei is off the table due to all the aggro it’s getting from the US and Samsung would be likely to ruthlessly exploit its overwhelmingly strong bargaining position, since it’s another of the long list of companies Apple is on frosty terms with. Other than that there’s Taiwanese MediaTek, but Ramsay seems to think it’s even further behind than Intel.

A third, highly implausible, option would be for Apple and Qualcomm to kiss and make up. Not only does there seem to have been too many things said that can’t be unsaid in their bitter legal dispute, but that would be an utter humiliation for Apple and surely Qualcomm wouldn’t be able to resist imposing punitive terms. Having said that, sometimes pragmatism and enlightened self-interest prevail, but we would be amazed if they did in this case.

The last option would be for Apple to buy Intel’s modem business from it in order to accelerate the development process. This would be expensive but Apple can certainly afford it. There is, however, no guarantee Apple would improve on Intel’s efforts since modems are hardly a core competence. It’s even less likely that Apple would be able to make a material improvement in the next year or two.

A fifth option not posited by Ramsay would be for an even longer delay in bringing a 5G phone to market. Apple is brilliant at marketing and could easily throw resources at belittling 5G in the short term to downplay the significance of its absence from that market. That argument would certainly find some sympathy from us in the short term, but it would surely start to wear thin before long.

USB4 specification unveiled, featuring Intel Thunderbolt 3

The next generation USB standard will be based on Intel’s Thunderbolt protocols, as well as be backward compatible with earlier generations of USB.

Intel earlier announced that its upcoming 10nm processor will be the first to integrate Thunderbolt 3, and it has already been supported by both Windows 10 and macOS. According to the latest announcements from both Intel and the industry association and standardisation body USB Promoter Group, Intel has made the Thunderbolt 3 specifications available for royalty free use by the industry.

“Releasing the Thunderbolt protocol specification is a significant milestone for making today’s simplest and most versatile port available to everyone,” said Jason Ziller, General Manager, Client Connectivity Division at Intel. “By collaborating with the USB Promoter Group, we’re opening the doors for innovation across a wide range of devices and increasing compatibility to deliver better experiences to consumers.”

The USB community is obviously happy to see that the move from Intel will likely avoid the branching of the next generation USB standards. “The primary goal of USB is to deliver the best user experience combining data, display and power delivery over a user-friendly and robust cable and connector solution,” said Brad Saunders, USB Promoter Group Chairman.

The key advantages of USB 4 include:

  • High speed: up to 40 Gbps operation, which will double the 20 Gbps speed of USB 3.2 and Thunderbolt 2, or more than 80 times faster than the USB 2.0 speed of 480 Mbps;
  • Multi-channel data communication: enabling multiple simultaneous data and display protocols
  • Backward compatibility: USB4 will be compatible with USB 3.2, USB 2.0, and Thunderbolt 3

“The USB 4 solution specifically tailors bus operation to further enhance this experience by optimizing the blend of data and display over a single connection and enabling the further doubling of performance,” added USB Promoter Group’s Saunders.

After making the Thunderbolt specs public, Intel’s role will expand to industry wide testing, auditing and certification.

The USB4 interface is likely to continue with the USB Type-C standard, which will save more real estate for computer OEMs, if they can replace most of the legacy ports. When it comes to mobile devices, the co-existence of different standards of USB connections for charging and for data transmission has been a source of consumer frustration as well as a key contributor to electronics wastes. Apple has also been notorious for going its own way with cable standards, though recently there has been rumour that the next iPhone might ditch Lightning for USB Type-C connection.

The USB4 specifications will be published around mid-2019, according to the USB Promoter Group announcement.

Ericsson and Intel partner for 5G cloud platform

Ericsson and Intel have announced a new partnership which is aimed at aligning the Swedes efforts for software-defined infrastructure with Intel’s Rack Scale Design.

The resulting hardware management platform will be designed for telcos targeting 5G, NFV, and distributed cloud. In theory, the pair aims to create a common managed hardware pool for all workloads that dynamically scales. It’s the scalable and affordable dream telcos have been promised for years.

The duo has said the new tie-up will allow telcos to take advantage of multi-vendor hardware options, Ericsson’s end-to-end software solutions, and Intel’s latest architectural solutions.

“We have long history of successful collaboration with Intel. Lars Mårtensson, Head of Cloud & NFV infrastructure for Digital Services at Ericsson. “This new collaboration will focus on software in addition to hardware and we see it to be truly transformative for service providers’ ability to successfully deploy open cloud and NFV infrastructure, from centralized data-centres to the edge. Intel’s and Ericsson’s joint efforts significantly strengthens the competitiveness and roadmap of the Ericsson Software Defined Infrastructure offering.”

“5G will be transformative, accelerating today’s applications and triggering a wave of new usages and edge-based innovation,” said Sandra Rivera, SVP of the Network Platform Group at Intel. “Our infrastructure manageability collaboration with Ericsson will help communications service providers remove deployment barriers, reduce costs, and deliver new 5G and edge services with cloudlike speed on a flexible, programmable and intelligent network.”

As part of the tie up, the Ericsson SDI Manager software and Intel RSD reference software will be converged, though the pair reiterated full backward compatibility would be maintained for existing customers. Any new solutions developed moving forwards will be subsequent Ericsson hardware platforms, as well as Intel’s server products which are sold through third-parties and in other industry segments.

Apple steps up in-house modem efforts – report

Its dispute with Qualcomm seems to have pushed Apple towards developing its own modem in-house so it no longer has to rely on external suppliers.

Apple has been making its own application processors for years thanks to the ARM IP licensing business model and the acquisition of PA Semi not long after the iPhone was launched. Making a competitive modem is a much trickier proposition, however, which is why Apple continued to pay Qualcomm for the job however deeply it resented doing so.

Following the collapse in relations between them it looked like Apple was going to turn to Intel for all its modem needs, but a report from Reuters would seem to indicate that’s not the long term plan for Apple, and that it would rather have full control over its modem destiny.

Apparently Apple has now shifted its modem silo from the supply chain unit to the hardware design one. Accordingly Johny Srouji, who heads up the hardware side of things at Apple, will now also have to deal with this future modem. This especially makes sense since Srouji, who worked at Intel for a while, was brought in in 2008 to head up the in-house SoC side of things.

The benefits of doing as much manufacturing in-house are clear, especially for products as integrated as Apple ones, but Qualcomm has a clear lead when it comes to modem design. What if the future Apple modem is an order of magnitude slower than Qualcomm – what kind of effect might that have on iPhone sales? We’ll probably find out in a few years.

Premier League giants take baby steps toward digital economy

If you’ve ever been on any sports’ club website you would be forgiven for thinking these guys are technophobes, but Intel is predicting a new era for sports broadcasting and fan engagement.

“We’re going to find ourselves in a couple of years’ time looking back and wondering how we ever got by,” said XXX of Intel.

The sports industry, and football in particular, has never really been at the forefront of technology. For an industry which defines itself, and almost entirely depends, on fan engagement little has been done to embrace new technologies and ideas. However, the last couple of years have seen a few rays of hope.

A couple of the more innovative clubs in the football industry, ones who just so happened to be partners of Intel, featured on a panel session to discuss the glaringly obvious opportunities which are being presented to sport clubs and the progress being made in shifting incredibly traditional businesses.

“We have been seeing a convergence of technology and sport and this has been accelerating over the last few years,” said Damian Willoughby, SVP Partnerships at Manchester City FC.

“Technology is impacting all of us and from our perspective, we are looking at how we can create fan engagement or fan experience, whether it is at Anfield or anywhere around the world,” said Billy Hogan, Chief Commercial Officer at Liverpool.

“What isn’t changing is the popularity of the English Premier League,” said Peter Silverstone, Commercial Director of Arsenal. “What is changing is the consumer appetite for how they consume the English Premier League as a product.”

What you have to take into consideration, and why it is so baffling that football clubs and the industry on the whole have been so slow to react to new technologies, is the global reach. The English Premier League (EPL) official Facebook and Twitter pages have 42 million and 18 million followers respectively. Another 23 million follow the competition on Instagram.

Below you can see the social media reach of each of the clubs on show during the event:

Club Facebook Twitter Instagram YouTube
Liverpool 32.2 million 11 million 12.4 million 1.1 million
Arsenal 36.9 million 14 million 13.3 million 1.1 million
Man City 36.7 million 6.6 million 10.4 million 1.6 million

This is a truly global industry and while these numbers are certainly impressive, the challenge now is how to best capitalise on such significant assets. This is where the Intel partnership and content play a role.

As all three of the executives point out, the idea behind technology implementation is to offer a greater variety of ways for fans to consume content. This might be through virtual reality, player POV footage, more in-depth analysis, behind the scenes content or partners stories. The idea is to create content which came be customisable, interactive and varied. Each user can create their own story on-demand, building interactions which are more suited to them.

Looking at Intel’s True View product, one of the technologies which will be used to deliver this enhanced experience, XXX highlighted 38 5K sensors will be installed in each stadium, allowing the team to capture footage which is eight times the definition of HD. The cameras capture volumetric data (height, width, and depth) using voxels, a 3D pixel, delivering a new experience for the consumer.

Collecting this data will allow the three clubs to introduce 360 degrees replays, allowing the consumer to decide how the content is viewed, player POV footage and new content on laser wall screens. Intel believe this sort of technology is addressing a supply/demand chasm in the market; consumers are demanding a different type of experience, yet few in the world of sports seem able to deliver it.

Creating all of these experiences has another excellent impact on these clubs; it allows them to match the globalised nature of football. The worldwide footprint of the Premier League is pretty unmatched in the entirety of sports, especially over the last decade with clubs targeting fans on distant shores. These are three clubs which have certainly fit this mould.

“Some of these people will never get the chance to go to Anfield, but we can deliver this experience,” said Hogan, referencing fans in Indonesia, China and the US.

Although there certainly have been positive steps forward in converging the worlds of technology and sport, this is only the beginning. Looking forward, there are some genuinely exciting technologies in the pipeline, each of which has the potential to completely revolutionise the experience.

Virtual reality is one which is constantly discussed, and while there might be some applications and hardware on the market which offer some sort of experience, this is only the tip of the iceberg. VR is very much an embryonic technology for the moment, though the fast decreasing price of hardware and the approaching 5G euphoria could take this technology to the next level.

Another area to consider is the delivery of content through holograms. A couple of months back Vodafone delivered one of the best 5G demos we’ve seen, live-streaming a hologram from Manchester to its Newbury HQ of England Women’s football captain Steph Houghton. The image was crisp while latency was pretty much non-existent. Slumbering journalists very bolted upright by genuine innovation.

Imagine sitting in your living room and experiencing a Premier League Football game as if you were sat on the halfway line and seeing replays through the eyes of the players. Or how about a boxing match hosted in Las Vegas, but live-streaming holograms to hundreds of venues throughout the world. The viewing experience could be completely revolutionised.

What these three clubs are doing are the first baby steps into digital transformation, a buzzword which has plagued us for years. However, it might not be too long before the sports entertainment world morphs into a completely unrecognisable beast.

Intel bags 13% growth but weak forecast angers market

Intel has reported its revenues for 2018, and while executives will be preaching their success the market has reacting very differently.

With fourth quarter revenue of $18.7 billion, a 9% year-on-year increase, and full-year revenues of $70.8 billion, up 13% compared to 2017, it looks pretty good. Executives will feel they have done a fair job, though a 6.1% decline in after-hours trading tells a different story.

“2018 was a truly remarkable year for Intel with record revenue in every business segment and record profits as we transform the company to pursue our biggest market opportunity ever,” said Bob Swan, Intel CFO and Interim CEO.

“In the fourth quarter, we grew revenue, expanded earnings and previewed new 10nm-based products that position Intel to compete and win going forward. Looking ahead, we are forecasting another record year and raising the dividend based on our view that the explosive growth of data will drive continued demand for Intel products”

Despite a 9% increase in sales during the final period, Intel missed expectations while the markets are reacting to what is perceived as a weak forecast. The team has forecast revenues of $16 billion over the first quarter and a 27% operating margin, while full-year revenues are expected to grow to $71.5 billion with an operating margin of 32%.

Looking at the specific segments, the PC-centric business brought in $9.8 billion, a 10% year-on-year boost, in the final quarter, and $37 billion across the year, up 9%. Intel suggested the higher performance products and strength in commercial and gaming segments brought about the growth.

Collectively, Intel’s data-centric businesses grew 20% year-on-year to $32.9 billion for the full year, with the Data-centre unit collecting the lions share, growing 21% year-on-year. Interestingly enough, mobile revenues have not been specifically listed here though this could be a very successful venture in the future.

It increasingly looks like Intel will be supplying modems for all Apple devices moving forward, as the iLeader looks to ditch Qualcomm. Intel has chequered past when it comes to mobile, but this could certainly be a more profitable venture as Apple bleeds its customers dry.

The connected car takes pole position at CES

With the glitz and glamour of Las Vegas, it perhaps shouldn’t come as much of a surprise the connected car is stealing the headlines at the 2019 Consumer Electronics Show (CES).

Starting with Audi, pairing up with Disney the team has unveiled an in-car VR entertainment system which adapts the content to the movements of the car. The game itself is called ‘Marvel’s Avengers: Rocket’s Rescue Run’ and is based on the journey itself. If the car turns right or accelerates the spaceship in the experience does the same.

While Audi is the parent company, the open platform has been brought to the market through subsidy Holoride. Audi will license the technology to the start-up, which will be made available to all carmakers and content developers in the future.

“Creative minds will use our platform to come up with fascinating worlds that turn the journey from A to B into a real adventure,” said Nils Wollny, Head of Digital Business at Audi, and future the CEO of Holoride. “We can only develop this new entertainment segment by adopting a cooperative, open approach for vehicle, device and content producers.”

Moving across to the mapping side of the connected vehicle, Intel’s Mobileye announced a new agreement with UK mapping agency Ordnance Survey. Although this might not be the most exciting aspect of the connected car space, it is perhaps the most crucial; without the relevant location data, the OS is pretty much useless.

While this data will certainly supplement the Intel offering for the connected car space, Mobileye and Ordnance Survey will use the data to create new customized solutions derived from the location intelligence, to help companies realise the riches promised through the city segment.

“One key, and common, learning is that detailed and accurate geospatial data is a must for the success of these projects,” said Neil Ackroyd, Ordnance Survey CEO. “We envisage this new rich data to be key to how vehicles, infrastructure, people and more will communicate in the digital age. Our partnership with Mobileye further enhances our commitment to supporting Britain as a world-leading center for digital and tech excellence.”

For chipmaker Qualcomm there’s been no rest to check out the shows. While Audi, Ducati and Ford have all been using its tech to run various demos across the show, the team has also teamed up with Amazon’s Alexa to demonstrate in-car artificial intelligence.

“The vision behind Qualcomm Technologies’ automotive solutions is to continuously improve and expand the realm of possibilities for in-car experiences while delivering unparalleled safety-conscious solutions,” said Nakul Duggal, SVP of Product Management, Qualcomm.

“Leveraging Amazon’s natural language processing technology, along with services like Amazon Music, Prime Video, Fire TV and Audible, allows us to offer an exclusive, interactive in-car experience for both the drivers and passengers to leverage the latest innovations in a natural, intuitive way.”

The demonstration makes use of Qualcomm’s Smart Audio Platform to include immersive natural language instructions involving in-vehicle navigation, points of interest outside the car and multimedia services which users will use every day at home with Alexa.

“Our vision is for Alexa to be available anywhere customers want to interact with her, whether they’re at home, in the office or on the go,” said Ned Curic, VP of Alexa Auto at Amazon.

This is of course not the only bit of news featuring Amazon this week, as the team announced a partnership with navigation firm Here yesterday. The tie in gives the Here platform a smarter, voice UI and gives Alexa a useful little foray into the connected car segment, an area Google’s virtual assistant has got a little bit of a head-start in.

Finally, AT&T and Toyota Motor North America announced they will enable 4G LTE connectivity for various Toyota and Lexus cars and trucks across the US, starting at the end of the year. As part of the deal, owners of the relevant vehicles will also receive unlimited data plans from AT&T, while the vehicle will also become a wifi hotspot.

“Cars are the ultimate mobile device. Working with Toyota and KDDI we will bring the benefits of connectivity to millions of consumers,” said Chris Penrose, President of IoT Solutions at AT&T.

“This new technology deepens our relationship with Toyota. And we couldn’t be happier to continue working with them. We’re both founding members of the American Center for Mobility testing facility for connected and automated vehicles, where we will help deliver the future of connectivity.”

Intel brings forward launch of 5G modem in bid to silence doubters

Apple’s decision to go all-in on Intel modems comes with a lot of pressure, so Intel is desperate to convince us it’s up to the task.

A week ago reports appeared to confirm that Apple’s first 5G phones will come in 2020 and will exclusively use Intel modems. Telecoms.com was among the commentators asking whether or not this would turn out to be a rash decision by Apple, with rival Qualcomm expected to be ahead in the 5G modem race.

Intel seems to have taken this scepticism as a personal challenge and has consequently announced it will now be launching it more than half a year sooner than previously thought. The Intel XM 8160 5G modem will now be released into the wild in the second half of 2019, although there’s nothing in the announcement to indicate it will power an iPhone that soon, with the September 2020 models still the likely recipients.

In fact Intel says the earliest you will see it in devices is in the first half of 2020, which does beg the question of whether this ‘bringing forward’ of the launch is purely cosmetic. Could Intel have merely tweaked the definition of ‘launch’ to allow for some kind of meaningless soft-launch six months earlier. Maybe Qualcomm will retaliate with a similar move.

“Intel’s new XMM 8160 5G modem provides the ideal solution to support large volumes for scaling across multiple device categories to coincide with broad 5G deployments” said Cormac Conroy, GM of Intel’s Communication and Devices Group. “We are seeing great demand for the advanced feature set of the XMM 8160, such that we made a strategic decision to pull in the launch of this modem by half a year to deliver a leading 5G solution.”

The fact that the XMM 8160 is ‘multimode’, supporting 5G NR in SA and NSA modes across multiple frequencies, as well as legacy wireless standards is something Intel is keen to flag up. So much so it did a special diagram.

The Intel XMM 8160 5G modem will offer very clear improvements in power, size and scalability in a package that will be smaller than a U.S. penny. It will be released in the second half of 2019, and it will support the new standard for 5G New Radio (NR) standalone (SA) and non-standalone (NSA) modes as well as 4G, 3G and 2G legacy radios in a single chipset. (Credit: Intel Corporation)

Apple reportedly plans to use Intel 5G modem in 2020, but will it be any good?

Apple has boxed itself into a corner by going to war with Qualcomm, so a lot rides on the competitiveness of Intel’s 5G modem.

Fast Company has reported that Apple intends to use the Intel 8161 5G modem in its 2020 iPhones as part of its already-known strategy of switching to Intel as its sole provider of modems. This move seems to be largely driven by Apple’s dispute with Qualcomm over how much it charges for its chips.

When large companies declare legal war on each other the dispute usually metastasises as their respective legal teams search for further dirt they can use as leverage in the ongoing negotiations. These things usually conclude in an out-of-court settlement, the terms of which are largely determined by the relative legal strength of the respective positions.

The more likely one party is to win a court case, the stronger its position in the pre-case negotiation, which is why Qualcomm has been so keen to prove that Apple committed industrial espionage in sharing Qualcomm trade secrets with Intel in order to help it produce better modems.

While Qualcomm’s most recent court filing broadly outlines fresh allegations resulting from the discovery process, conversations we had at its recent event in Hong Kong suggested Qualcomm has got hold of emails that prove the alleged passing on of protected intellectual property took place.

If Apple did indeed offer Intel a helping hand, something that Intel denies, then the clear inference is that Intel’s modems were of insufficient quality without cheating. A worst case scenario might be that the 5G modems Apple apparently intends to use would be declared illegal, but even if that doesn’t happen there will be questions over the 5G performance of those iPhones versus phones running Qualcomm modems.

So, assuming this rumour is accurate, a hell of a lot is riding on those first Intel 5G modems. If they’re rubbish then not only will that be a direct competitive win for Qualcomm, but the sales and reputation of the iPhone are likely to suffer too. In its desire to dominate its suppliers Apple is forcing itself to make some technology choices that may be far more costly than any money saved on components.

Intel takes the autonomous euphoria to the seas

Self-driving cars might not be with us for decades, but that hasn’t stopped Intel from partnering Rolls-Royce to take the autonomous trends to the high-seas.

The new partnership between the pair will combine the engineering know-how of Rolls-Royce and Intel’s AI smarts to create autonomous ships. With 90% of world trade is carried out by international shipping we’re surprised this idea hasn’t be raised earlier.

“We’re delighted to sign this agreement with Intel, and look forward to working together on developing exciting new technologies and products, which will play a big part in enabling the safe operation of autonomous ships,” said Kevin Daffey, Director, Engineering & Technology and Ship Intelligence at Rolls Royce. “This collaboration can help us to support ship owners in the automation of their navigation and operations, reducing the opportunity for human error and allowing crews to focus on more valuable tasks.”

“Delivering these systems is all about processing, moving and storing huge volumes of data, and that is where Intel comes in,” said Lisa Spelman, GM of Xeon Products at Intel. “Rolls-Royce is a key driver of innovation in the shipping industry and together we are creating the foundation for safe shipping operations around the world.”

While it might still be decades before autonomous vehicles hit the roads in any notable fashion, the seas and oceans seem a perfect environment for the autonomous technology. Not only do the ships rarely have to content with human beings crossing their paths, the dangers of shipping and the premeditated natures of shipping routes seem to make it a simpler task. We’re sure we are completely underestimating the complexities of the operations, but the biggest challenge for self-driving cars will be dealing with human operated vehicles and pedestrians; humans are unpredictable.

In terms of how the technology will work, the ships will have dedicated Xeon Gold servers onboard, turning them into floating data centres with heavy computation and AI inference capabilities. Unlike cars, these are vehicles which do not have to worry as much about being weight and space efficient so the compute problem becomes simpler. Rolls Royce’s Intelligent Awareness System uses AI-powered sensor fusion and decision making to provide situational awareness to the vessels, improving safety and allowing the ships to detect objects several kilometres away, while the data collected by the vessels will be stored using Intel’ 3D NAND SSDs, acting as a ‘black box’ in case of an accident.