“On its earnings call, Intel told investors that during the second quarter of 2016, it began shipping its XMM 7360 modem to customers,” Eassa writes. “Given that Apple is essentially the only major smartphone vendor left that uses stand-alone modems as far as I can tell, it’s hard to imagine that Intel is shipping these modems to anyone but Apple.”
“But, for those who require even more evidence, Qualcomm had the following to say in its own prepared remarks with respect to its chip business: ‘We are on track to deliver operating margins of 16% or better in QCT in the fourth fiscal quarter and it is important to note that our planning assumptions incorporates second sourcing at our large modem customer,'” Eassa writes. “It’s well understood that Apple is Qualcomm’s “large modem customer,” so it seems quite clear that Apple will be second sourcing from another company. That company is almost certainly Intel.”
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MacDailyNews Take: Intel Inside.
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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