Intel Could Be the Exclusive Supplier of iPhone Modems in 2018: KGI

2018 iPhones to rely solely on Intel baseband chips, KGI claims

Shares of Qualcomm fell 3 per cent yesterday after two brokerages said Apple Inc will replace the chipmaker with Intel for the modem chips in its next generation of iPhones. Apple has chose to drop the supply of LTE modems by Qualcomm.

The cheaper version of iPhones did contribute a lot in keeping iPhone shipments buoyant in the holiday season.

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Intel is also said to be offering more competitive prices. A baseband is a processor inside phones that manages all its radio functions, or all functions that require an antenna. For instance, its newest XMM 7560 modem can support both GSM and CDMA.

The Intel Chip is rumored to support dual SIM and dual standby. In tests performed by Cellular Insights, the iPhone 7 Plus using the Qualcomm modem "had a significant performance edge over the iPhone 7 Plus with the Intel modem". Qualcomm has supplied Apple components for years but had an issue last year when Apple blamed Qualcomm of overcharging the price of their chips and their refusal to pay $1 billion in rebates.

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Soon after this report, Qualcomm filed three fresh complaints against Apple in a USA court, alleging violations on 16 different patents by the iPhone maker that includes the "super-premium" iPhone X. The European Union has already slapped a $1.23 billion fine on Qualcomm for misusing its dominance in the baseband chipset market.

It was earlier reported that the 2018 iPhones would have panels manufactured by LG, but Ming-Chi Kuo has claimed the South Korean technology company might not be able to meet the production standards of Apple. One of the lawsuits between the two companies, launched by Qualcomm, alleges that Apple improperly shared its proprietary code with Intel. Qualcomm had also sought a ban on iPhone X in the US. Apple typically likes to diversify its suppliers and could give back orders to Qualcomm in exchange for more favorable licensing terms.

Technology companies lead stocks higher in midday trade
Facebook rose 3.5 percent after the company forecast rising ad sales, despite a dip in usage on the social media network. Advanced Micro Devices (AMD) jumped more than 3% after reporting an across-the-board fourth-quarter beat late Tuesday.

The new iPhones will be hitting the market this year and there are certain changes that we know for sure are going to happen when the new phones release. Although Intel's new modems will be equipped with this functionality, whether or not Apple incorporates it still remains to be seen.

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