Apple Inc. (NASDAQ:AAPL) To Use Intel Corporation (NASDAQ:INTC) LTE Chips In iPhones?

Apple Inc. (NASDAQ:AAPL) is apparently targeting, next year, to release a new iPhone, aimed at users in the emerging markets of Asia and Latin America. But the fact that the new release may be powered by Intel Corporation (NASDAQ:INTC)-made wireless modem chips, has definitely caught the fancy of the gadget-world!

Intel’s 7360 LTE modem

The new iPhone’s hardware will include Intel’s newly-made modem chip, 7360 LTE. The surprise element here is the change in the maker itself. For traditionally, iPhones have default QUALCOMM, Inc. (NASDAQ:QCOM)-made chips.

Therefore, the present shift by Apple Inc. to use Intel’s modem chips is game-changing.

Why Intel 7360?

Apple Inc. (NASDAQ:AAPL)’s choice of Intel Corporation (NASDAQ:INTC) stems from its ‘defining’ features: download speed of 450 megabits per second for 3X carrier and 9/10 LTE, besides super-build, minimized power consumption and speed. Secondly, the chips are made at Infineon, the former Apple Inc. 3G modem chip supplier, and now part of Intel Inc. group.

Apple Inc. (NASDAQ:AAPL) has always been Intel’s most sought after, but elusive client thus far. It is only now, after Apple Inc. decided to ‘second source’ major hardware used in its devices, so as to even-out its supplier equation with Qualcomm, that Intel Corp. has finally found a place on Apple Inc.’s modem chip-vendor list.

Intel will take longer to Make tick-tock

Meanwhile, Intel Corporation (NASDAQ:INTC) is transitioning technologies and inducing advanced semiconductor manufacturing features. At the same time, it hopes to bring down ‘costs per generation,’ therefore, the pressure under which it operates on the production and manufacturing front is abnormal. Hence, under the circumstances, Intel will probably not lock itself into introducing newer processors every second year, but look for a three year time-line.

Therefore, Apple Inc. (NASDAQ:AAPL)’s new chip-supplier, under the circumstances it currently operates, may have issues with delivering consignments on time. However, Intel Corp.’s near-desperation to decisively scale the mobile component supplier-space and beat competitor QUALCOMM, Inc. (NASDAQ:QCOM) could well be the primary motivator!

Lisa Ray

Lisa Ray primarily covers Retail and Healthcare. Lisa Ray has completed her MBA (Finance) and an avid market tracker. She is a stock market analyst who closely tracks US markets along with other global markets like India. She has been expressing her views for years about markets and also advises various clients.

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