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Qualcomm Could No Longer Supply Apple With iPhone LTE Chips This Year – Intel to Become Exclusive Supplier?

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Feb 5, 2018
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Apple is currently relying on Qualcomm and Intel for the LTE modems found in iPhones and iPads but the partnership between Qualcomm and the tech giant has been out of sorts lately due to their ongoing legal battles. While a potential Broadcom acquisition might settle things between the two companies, the latest in the current partnership news is that Apple might only be relying on Intel to provide it with future LTE chips.

New iPhone Models Could Get LTE Chips From Intel – No Orders Could Be Given to MediaTek or Qualcomm

Ming-Chi Kuo of KGI Securities previously expected that Intel would be supplying around 70 percent of the total LTE chips for future iPhone and iPad models, with Qualcomm supplying the remaining 30 percent. However, an updated report from him has a completely changed stance, and this is what has been said in the latest report.

iphone-x-with-iphone-8-and-iphone-8-plus-15Related iPhone Sales in U.S. Grew by 16 Percent During a Period Where the Market Saw a Drop of 11 Percent

“We expect Intel to be the exclusive supplier of baseband chip for 2H18 new iPhone models, while Qualcomm may not have a share of the orders at all.”

The iPhone 8, iPhone 8 Plus or iPhone X did not debut with an Intel XMM 7560 LTE modem and for those that do not know, this chip has the capability to be compatible with both GSM and CDMA networks, meaning that Apple could supply an iPhone that can work with AT&T, Verizon, Sprint and T-Mobile. Unfortunately, the drawback here is that if Intel commands all the orders, then Apple might have to pay more since the negotiation leverage will be removed from the firm’s list of options.

In addition, Intel has been behind Qualcomm in the speed category and the latter is actively working for a 5G rollout in the near future. It is possible that MediaTek is introduced into the fold, as we reported earlier so nothing is concrete at this time. However, we do know this; Apple might be getting rid of Qualcomm due to the ongoing legal battles and having one less headache might be reason enough for the Cupertino tech giant to rely on Intel.

Source: MCR

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