“It has been rumored for quite some time that microprocessor giant Intel is set to provide its XMM 7360 modems for some portion of Apple’s upcoming iPhone 7 series of devices,” Ashraf Eassa writes for The Motley Fool. “Based on comments from both Intel and Qualcomm (NASDAQ:QCOM) on their respective earnings calls, it now seems clear to me that Intel is, indeed, inside of the next generation iPhone.”

“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.”

Read more in the full article here.

MacDailyNews Take: Intel Inside.

Analyst: Intel beats Qualcomm to supply 50% of Apple iPhone 7 units – July 11, 2016
Some versions of Apple’s iPhone 7 will use Intel chips; Intel gets first mobile win – June 10, 2016
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