Israeli website CTech, which cites internal Intel communications and people familiar with the matter, reports that Apple has notified Intel it will not use Sunny Peak chips in future devices.
Intel executives said Apple was expected to be the key mobile customer of their new component.
The execs are said to have blamed Apple's decision on "many factors" including the introduction of a faster WiGig (802.11ad) Wi-Fi standard, which brought "new and unanticipated challenges", adding that the team working on the Sunny Peak modem will be redirected to other efforts.
Losing the iPhone business won't be the only thing that could hurt Intel in 2020.
Since, however, Intel has debunked the rumours and said it has no plans to halt production of its 5G modem chips.
Update: An Intel spokesperson has denied CTech's report, reaching out to SiliconANGLE and other publications with a statement saying "Intel's 5G customer engagements and roadmap have not changed for 2018 through 2020".
Intel has reportedly halted development of its new 5G mobile modem after Apple decided not to place orders for future iPhones.
Last month Bloomberg reported that Apple might be considering MediaTek instead of Intel. Sunny Peak was a combined 5G, Wi-Fi, and Bluetooth device and the same documents claim Intel will attempt to rework Sunny Peak for inclusion with Apple's 2022 device family. "We remain committed to our 5G plans and projects". Qualcomm, of course, is hoping to both ink a 5G patent licensing agreement with Apple as well as sell its 5G silicon to the iPhone vendor.