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Apple may be using Intel modems exclusively in the upcoming iPhones

KGI Securities analyst, Ming-Chi Kuo, expects Intel to supply all the modems for iPhones manufactured in the second half of 2018. In a note received by macrumours, Kuo says that Qualcomm will not receive any of the orders at all in 2H18.

While this move may likely be seen as retaliatory by many given the recent legal battles the two companies are currently embroiled in, it is important to note that the Intel XMM 7560 modem present in certain variants of the iPhone X, supports both GSM and CDMA bandwidths. Therefore, the modem is capable of supporting all the major networks in USA and around the world.

On the other hand though, Kuo believes that the move will place extra pressure on Qualcomm, which has reported a decrease in profits amidst fines it has received from various antitrust bodies in regards to anticompetitive practices.

Apple is well known for sourcing components from multiple vendors to reduce its reliance on a single supplier and if possible prefers to manufacture components in house. Therefore, this move comes as a bit of a surprise, however Kuo believes Apple may give Qualcomm a share of the orders if Apple is willing to negotiate in the ongoing lawsuits.

As of yet, Apple have not made an official announcement regarding modem orders so this remains nothing more than a statement, although Kuo has a great track record. If this turns out to be true it will be interesting to see how Qualcomm will respond to the situation.

Image: TechGiri

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