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Apple's Pricey iPhone X Lacks Wireless Data Bragging Rights

Buyers of Apple's (AAPL) new, high-end iPhone X may get the world's best display and facial recognition but they'll have to do without top wireless data speeds if AT&T (T), T-Mobile U.S., Sprint and Verizon Communications (VZ) improve their networks as expected.

X The iPhone X's "singular weakness is not using the fastest gigabit LTE modem available," said Patrick Moorhead, the principal analyst at Moor Insights and Strategy.

Qualcomm (QCOM) and Intel (INTC) provide Apple with iPhone modems that connect to wireless networks. Qualcomm's X16 modem supports gigabit data speeds, analysts say, while Intel's modem does not. Gigabit-per-second data service is about 50 times faster than current average data speeds.

Even if Qualcomm's X16 modem is be built into the iPhone X, Apple may throttle back its performance, says Walter Piecyk, analyst at BTIG Research. Keeping both modems on an even keel avoids customer complaints.

"Apple's product presentation yesterday did not include any reference to gigabit-class LTE speeds, which likely implies that it is crippling the functionality of Qualcomm's latest chip capabilities to keep it at parity with Intel," Piecyk said in a blog post.

Further, Qualcomm and Apple are facing off in federal court over Qualcomm's licensing for modem chips. Apple has alleged that Qualcomm is charging unfair prices for the technology and is engaging in anticompetitive practices.

Apple unveiled the iPhone X on Tuesday. The iPhone starts at $999; a model with 256 gigabytes of memory costs $1,149.

Samsung Electronic's Galaxy S8, a rival to the iPhone X, has Qualcomm's X16 LTE modem. Motorola and HTC will also have phones supporting superfast 4G LTE speeds, analysts say.

AT&T, T-Mobile (TMUS), Sprint (S) and Verizon all have plans to push existing "4G LTE" networks to much faster speeds with more spectrum and antennas. 4G LTE networks may provide near gigabit-per-second data speeds before the arrival of much-touted 5G wireless networks.


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On the other hand, wireless firms would likely provide gigabit LTE speeds on a limited basis near-term, not nationwide.

While Apple's iPhone X may lag some smartphones in potential data performance, it still can handle mainstream wireless services.

Ookla in a recent report said the average download speed on U.S. mobile networks in 2017 has reached 22.7 megabits per second. That's 19% faster than in 2016. T-Mobile led with average nationwide speeds of 23.2 Mbps, Ookla said.

Apple stock slipped 0.8% to close at 159.65 on the stock market today.

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