Why Wall Street is worried that Apple is getting left behind in the 5G arms race

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Why Wall Street is worried that Apple is getting left behind in the 5G arms race
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Many industry analysts are predicting a tough time for Apple in the race to embrace 5G, but this won't necessarily harm the company long-term.

In recent weeks, attention has turned to Apple. So often at the cutting-edge of innovative new technology, the company is yet to announce a 5G phone of its own. Gartner thinks Apple won't roll out a 5G phone until 2020,Supplier problems, legal woes, and pricing problems holding Apple back

The note added that"it is widely known that Intel is not profitable with the modem that it sells to Apple, and with the recent CEO change, Intel may not pursue future development of the modem, especially if it believes Apple will eventually use its own modem."AFP / Stringer/Getty Imageswith another chip maker, Qualcomm. The dispute concerns intellectual property theft: Specifically, accusations of Apple stealing trade secrets from Qualcomm and passing them onto Intel.

Another possible reason for Apple's 5G slowness concerns spectrum. According to UBS, the mixture of spectrum bands being used to support 5G in the US may mean that Apple's ability to cater to its home market is limited. Unlike Apple, Chinese handset makers such as Huawei can simply decide to ignore the US market and roll out China-specific 5G phones.A third possible reason is cost. UBS thinks that 5G could add up to $500 on to the price of a handset.

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