Published: Tue, February 06, 2018
Hi-Tech | By Cory Rios

Goodbye Qualcomm: iPhone 11 Chips To Be Made Exclusively By Intel

Goodbye Qualcomm: iPhone 11 Chips To Be Made Exclusively By Intel

As of now, the renowned analyst, Ming-Chi Kuo from KGI securities has once again made some interesting predictions saying that "Apple's 6.1-inch LCD model could reshape sentiment in 2018".

From start to iPhone 7, Qualcomm was the exclusive supplier for baseband modem chips for the iPhone. According to Ming-Chi Kuo, Apple is going to ditch the Qualcomm platforms for the latest Intel XMM 7560 that supports both GSM and CDMA.

It's unknown how long Apple's agreement with Intel would last, as the iPhone manufacturer might use its position as a bargaining chip in its string of legal battles.

Apple will save more than $100 million in the next iPhone cycle by moving to cheaper Intel modem chips, Nomura analyst Romit Shah said. The note was originally reported on by 9to5Mac and MacRumors. As a result of these lawsuits and fines, and Apple withholding royalty payments, Qualcomm claims its revenue is being impacted. Intel shares were down 3.53 percent; Apple shares were down 2.5 percent; and Qualcomm shares fell by 6.57 percent. Intel chips however will be able to support dual chips and dual stand-by even though there is no confirmation Apple is planning to develop an iPhone model having twin SIM slots. That means Apple handed over as much as $40 to Qualcomm on an $800 iPhone. Intel has a few advantages to offer as well. As mentioned, the iPhone SE managed to attract a loyal following, and credit goes to its more-than-decent specs and functionalities.

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That may be so, but the fact is demand for iPhone X cooled quickly before Christmas, as several market observers have pointed out.

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.

Interestingly, benchmark tests suggest that iPhone X handsets equipped with Qualcomm modems have better LTE performance than those equipped with Intel hardware. But Kuo adds that it's too early to tell whether Intel will maintain its position of exclusivity in the future, as Apple doesn't typically like being dependent on a single company.

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