“Northland Capital Markets’ Gus Richard this morning offers a mixed view of Intel, writing that it has won perhaps as much as 50% of Apple’s iPhone business for the forthcoming model, even as ARM Holdings and its partners seem primed to finally dig into Intel’s vaunted server computer chip empire,” Tiernan Ray reports for Barron’s.
“Without citing sources, Richard, who has a Market Perform rating on Intel stock, opines the company’s parts for mobile devices — presumably a modem under the ‘XMM’ designation — has won business with what would presumably be an ‘iPhone 6S,’ widely expected to be unveiled in September,” Ray reports.
Intel’s Modem Wins at Apple: Apple has been evaluating Intel’s model for a while. We now believe that Intel will capture roughly 50% of Apple’s modem business in the upcoming iPhones due to launch September 9th. Further, assuming a 50% share of modem business in the new iPhones we estimate that this win could represent $750M to $1.25B in revenue for Intel in CY16. This is a marque win for Intel and would go a long way to reducing the mobile business losses. — Northland Capital Markets analyst Gus Richard
Ray reports, “However, Alibaba Group Holdings is among large data center outfits that are moving more and more to servers using chips based on ARM’s instruction set architecture, instead of Intel’s ‘x86,’ he believes.”
Read more in the full article here.
“Intel’s new 7360 LTE modem will occupy a socket on the new iPhone’s circuit board that’s long been reserved for Qualcomm chips,” Mark Sullivan reports for VentureBeat back in March. “Intel has been gunning hard during the past year for a place in the iPhone and now appears to have succeeded, at least partly. The 7360 chip will ship inside a special version of the iPhone that will be marketed to emerging markets in Asia and Latin America, the sources said.”
Read more in the full article here.
MacDailyNews Take: If true, this is obviously bad news for Qualcomm.