Previously, Kuo expected Intel to supply 70% of modems with Qualcomm providing the remaining 30%; however, in a new investor note, the analyst suggests that may no longer be the case.
We expect Intel to be the exclusive supplier of baseband chip for 2H18 new iPhone models, while Qualcomm may not have a share of the orders at all.
There are multiple reasons that Apple might decide to go with Intel as its sole supplier. First, its latest XMM 7560 modem supports both GSM and CDMA, meaning that Apple would not need multiple models for different carriers. Second, the move would put pressure on Qualcomm and help Apple in its heated legal battle with the company over licensing and patent infringement.
Apple typically likes to diversify its suppliers and could give back orders to Qualcomm in exchange for more favorable licensing terms. Qualcomm is expected to aggressively pursue orders from Chinese smartphone makers to offset the lost orders.
Finally, Kuo predicts that an upgraded antenna and the 4x4 MIMO technology in the Intel XMM 7560 modem will boost LTE speeds in the next generation iPhones.
Please follow iClarified on Twitter, Facebook, Google+, or RSS for updates.