Some versions of Apple’s iPhone 7 will use Intel chips; Intel gets first mobile win

“Apple Inc.’s next iPhone will use modems from Intel Corp., replacing Qualcomm Inc. chips in some versions of the new handset, a move by the world’s most-valuable public company to diversify its supplier base,” Ian King and Scott Moritz report for Bloomberg.

“Apple has chosen Intel modem chips for the iPhone used on AT&T Inc.’s U.S. network and some other versions of the smartphone for overseas markets, said people familiar with the matter. IPhones on Verizon Communications Inc.’s network will stick with parts from Qualcomm, which is the only provider of the main communications component of current versions of Apple’s flagship product,” King and Moritz report. “Crucially for Qualcomm, iPhones sold in China will work on Qualcomm chips, said the people, who asked not to be identified because Apple hasn’t made its plans public.”

“Infineon Technologies AG provided the modem in the original iPhone in 2007. Infineon’s wireless division was later acquired by Intel and Intel lost the contract when Apple chose Qualcomm for subsequent versions of the phone that offered high data rates. Since then, Intel’s chip has failed to show up in any smartphone that has sold in significant numbers and the company has gained less than 1 percent market share,” King and Moritz report. “Analysts such as Stacy Rasgon at Sanford C. Bernstein have said that Qualcomm’s modems remain ahead of Intel’s offerings in performance when measured by how much data they can get from the network into the phone.”

Read more in the full article here.

MacDailyNews Take: It’s party time for Intel’s modem chip group!

SEE ALSO:
Apple’s potential switch for key iPhone component hits Qualcomm – April 21, 2016
More evidence that Apple is building its own modem – March 19, 2015
Intel axes 12,000 employees, 11% of its workforce – April 19, 2016
After eating Intel’s mobile lunch, Apple could next devour Qualcomm’s Baseband Processor business – January 20, 2015
Intel has 1,000 people working on chips for Apple iPhone – October 17, 2015

7 Comments

  1. This is the best news I’ve heard about iPhone 7 so far. I just hope this time it’s a differentiating factor in the Plus vs non-Plus, as opposed to the 6S Plus where half the devices ended up with an inferior Samsung chip just based on random luck, even if you bought a 128GB 6S Plus and paid the maximum amount.

  2. Buying an iPhone 7 to be used on the AT&T network will link it forever to AT&T? After all the effort Apple has put forth to make the iPhone carrier agnostic, I find this surprising. Likely someone trying to pump Intel stock prices.

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