Intel chips in iPhone 7 will go to AT&T, Qualcomm chips for Verizon
Qualcomm has continually eaten Intel’s lunch in providing mobile silicon from application processors to modems to controller circuits and so on. Intel has suffered strategy change after strategy change for it, but the company could reverse its fortunes with the mercy of Apple.
Sources to Bloomberg are saying that Intel will provide the modems on several versions of the iPhone 7, including those for AT&T and other global carriers. Qualcomm chips will still be on devices for Verizon and the Chinese market. Previous rumors have told of Intel’s share of business ranging between 30 and 40 percent.
It’s a small victory for Intel to help its money hole of a mobile unit while Qualcomm can afford the partial loss of business. The CEO of the San Diego based company had expected a shift in business from “a major customer”.
Bloomberg noted that Infineon Technologies provided the modem for the original iPhone. Infineon was subsequently bought out by Intel while Apple went with Qualcomm modems ever since.
An analyst believes that Qualcomm makes $15 for the chips it sends to Apple per device. Even a small share of the iPhone modem pool — another analyst estimates that AT&T will sell 23 million iPhones in 2017 while Verizon will sell 22 million — will help Intel’s bottom line.