Apple May Not Be Able to Ship a 5G Phone in 2020 [Report]

Despite expectations, Apple may not be able to ship a 5G iPhone by 2020, according to UBS analyst Timothy Arcuri.

In a note to investors on Tuesday, Arcuri said there is an "increasing potential that Apple may not be able to ship a 5G iPhone for 2020."

The analyst believes that Intel will not have its 5G chip ready in time for next year's iPhone and Apple is unlikely to strike a deal with Qualcomm. Consequently, Apple is said to be aiming for 2021, although Arcuri believes that is still a "big technical hurdle".


While not having a 5G iPhone next year could hurt Apple, UBS says there are a large number of users needing to replace their old devices which "should soften any potential impact." The firm estimates an effective upgrade rate of about 3.4 years.

“Though lack of 5G phone next year would be a near-term headwind, our install base and replacement analysis suggests iPhone can ultimately grow over the longer term,” Arcuri said.

UBS rates AAPL a buy with a price target of $215.

[via CNBC]