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Apple Will Buy LTE Modems From Intel, Not Qualcomm, Claims CLSA Analyst

Apple Will Buy LTE Modems From Intel, Not Qualcomm, Claims CLSA Analyst
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Apple Will Buy LTE Modems From Intel, Not Qualcomm, Claims CLSA Analyst

Apple may not take any more orders for Qualcomm chipsets in the future. If this is true, the iPhone 7 lineup won’t get supplies from the American company. Instead, it will buy Intel’s LTE modems. However, the partnership between the Cupertino firm and Intel for the supply of chips will be confirmed at a media event in September.

In this context, Qualcomm Chief Executive Officer Steve Mollenkopf said in an interview to an analyst, “a major customer will give orders to a rival, indicating a potential loss of business for the company. Samsung already uses multiple suppliers, leaving only Apple to make this change.”

In a research note issued by CLSA Securities analyst Srini Pajjuri, he claimed that Intel has secured almost 30 to 40 percent of chip orders from Apple. This indicates that a lion’s share will be managed by Intel, while a minimal portion of orders will be tasked to Qualcomm.

Although, rumors are floating around that the California-based technology company will be the major supplier, Apple could use multiple modem suppliers as well. The strategy is aimed at augmenting production level by overcoming constraints, but in the long-run it would make optimization difficult.

The reason is two different modems may function differently when it comes to connecting to cellular networks or performing differently. While the potential candidate is Intel, it is still not clear whom Apple might turn to as the second alternate supplier, reports Apple Insider.

MacRumors point it out that Intel has more 1000 employees engaged in building 7360 LTE modem for the upcoming iPhone 7. The chip is capable of ensuring uplink speed up to 100 Mbps, faster theoretical download speeds up to 450 Mbps and render support for LTE category 10 and 29 LTE bands.

By including LTE chipsets, the iPhone 7 will perform faster for browsing the web, streaming videos, downloading apps and other data-related tasks, according to MacRumors.

Also Read: Apple iPhone 7 Design Rumors: No Antenna Bands & Bigger Camera Module

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