So according to recent news Chip giant Intel has now secured orders for a “significant portion” of cellular modems for the new and upcoming iPhone 7. The news was broken by CLSA analyst Srini Pajjuri via a note that he sent to his clients. A copy of said note was intercepted by NDTV. The analyst cited that the “Asian supply chain checks” show these trends.
The iPhone 6s currently uses the Qualcomm’s MDM9635M LTE Cat. 6 cellular modem whereas the iPhone 6 uses Qualcomm’s MDM9625M. If we are to believe this news then Qualcomm is going to be losing a large portion of their client base very soon as Pajjuri stated that Apple is going to rely on Intel for only about 30 to 40 percent of the cellular modems and their main supplier is perhaps going to be Qualcomm.
For Qualcomm, this will result in a four percent negative impact on revenue and a two percent negative impact on the earnings. Contrastingly, Intel will probably see an almost one and a half percent or two percent increase in the revenue and earnings. Apple is also expected to “share shift back” to Qualcomm in 2017.
This new rumor is completely in line with the rumors from VentureBeat from 2015 which stated that Intel had almost a thousand employees currently working on chips for Apple’s iPhone. The report also stated that Apple was going to use the XMM 7360 LTE modem produced by Intel on it’s iPhone. The Intel XMM 7360 chip now supports the LTE category 10 and also gives speeds up to 450 Mbps as well as an uplink speed of 100 Mbps. This is 150 more Mbps more download speed and 50 Mbps more uplink speed than the iPhone 6s.
This is going to make the iPhone 7 that much more different and ‘revolutionary’ than it’s previous counterparts. we are all waiting with bated breath for the launch and release of the next generation iPhone!