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Apple is set to source a “significant portion” of the modems, for use in the upcoming iPhone 7, from Intel. According to an analyst at CLSA Securities, they are suggesting that Intel has won a huge chip deal with Apple.
The claim mirrors a similar report by VentureBeat last year, with claims that Intel had up to 1,000 employees working on the iPhone 7 modem.
Allegedly, Apple hoped to integrate Intel’s 7360 LTE modem into the handset, with a view to eventually conscript Intel for development of A-series processors for future phones.
The Intel chip supports LTE Cat 10 connections, which would be a first for Apple. In theory, it would offer download speeds of 450Mbps and upload speeds of 100Mbps, although this would be dependent on a variety of external factors.
For previous-generation iPhones, Apple has typically turned to US chipmaker Qualcomm for its high-quality modems. But Apple is reportedly looking to diminish its reliance on the market leader, and is said to be sourcing “30 to 40%” of iPhone 7 modems from Intel.
Given the scale of Apple's operations, the move by the company would result in Qualcomm’s earnings taking a massive hit.
Srini Pajjuri – the analyst behind the new report – has stated that Qualcomm is facing a 4% decline in yearly revenue already due to this move.
Meanwhile, Intel’s earnings could rise by between 1.5% and 2%.
Obviously, Apple is yet to confirm any details about the rumoured iPhone 7, and it’s still early days in the process.
Whatever the case, it’s probable that Apple has a new phone in the works for its annual September launch.
