Interestingly, the report claims that these would be for Apple’s “2017 iPhone models” which could either refer to the iPhone 7 or 7s, depending on your perspective.
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Digitimes states that the Qualcomm modems that are being used in Apple’s iPhone 6s and iPhone 6s Plus are 20nm chips, and they are being fabricated in partnership with TSMC.
On the flip side, this development seems a negative for Apple’s current (exclusive) modem supplier, Qualcomm (NASDAQ:QCOM), as the mobile chip giant would lose units and revenue as a result of such a move on Apple’s part. In order to defend themselves against Ericsson’s lawsuits Apple has to make sure that there are no surprises in respect to the relevant licenses of chips that are used in their iPhones. It is still unclear whether Apple is sending a message to Qualcomm to comply with the discovery to avoid losing its modem business. “The only role I can see for Intel’s modem would be a second tier phone like an iPhone 5c replacement, which could be reasonable volume, but at a much lower average selling price”.
In contrast, Qualcomm’s MDM9x35 – which component leaks suggest will be included in Apple’s upcoming iPhones – is built on TSMC’s more compact and power-efficient 20-nanometer manufacturing technology.
New LTE Modem In iPhone Inbound? “I can’t see Apple settling for second best technology”.
This is not a change in processor as Apple is expected to continue using their own ARM-based A-series chipsets.
Qualcomm will be providing 100 percent of the modem chips for Apple’s iPhone 6s, but Apple may ditch it in favor of Intel for future handsets, claims a new report.
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If Intel is eventually successful in doing so, then it should be able to more than offset the potential loss of stand-alone modem shipments to Apple with shipments of integrated applications processors and modems into the rest of the smartphone market.
