Apple's ongoing spat with Qualcomm will have a big impact on the modem-maker's fortunes this year, with suggestions that every 2018 iPhone will jump ship to use Intel hardware instead. The analyst previously said Intel to supply 70% of modems and remaining 30% would come from Qualcomm.
According to a report by KGI Securities, this year Apple will switch entirely to Intel baseband chips and not considering Qualcomm at all.
The Nomura analyst says that Apple will save more than $100 million in the next iPhone cycle by moving to cheaper Intel modem chips.
Shares of Qualcomm fell 3 per cent yesterday after two brokerages said Apple Inc will replace the chipmaker with Intel for the modem chips in its next generation of iPhones.
The lawsuits filed in the San Diego District Court alleged that Apple was infringing on patents "related to technologies that boost bandwidth in phones, save power and enhance photos from dual rear-facing cameras, among other things".
This move would make sense, given the recent bad blood between Qualcomm and Apple.
Intel is also said to be offering more competitive prices. The KGI report further claims that Apple is working to augment LTE transmission speeds by introducing 4X4 MIMO Chipsets. The iPhone 11 chips made by Intel will also support dual SIM functionality and dual standby, but that's no guarantee that the future iPhones would offer dual SIM support.
That may be so, but the fact is demand for iPhone X cooled quickly before Christmas, as several market observers have pointed out. The report points out that this change would likely happen with this year's iPhone X. The battle between Apple and Qualcomm seems to be the reason behind Apple's decision, points out the report. The news however, is a blow to Qualcomm, which for a while enjoyed exclusivity with Apple.
But the December quarter overall figures do tell a different story, with the company suffering its first year-on-year decline for iPhone in the holiday season since the smartphone was launched a decade ago.
The second reason is the fact Intel now has a modem Apple can use across all U.S. networks.