Here's How More Share Intel Could Win In The Apple iPhone – The Motley Fool

Last quarter, the chip giant Intel (NASDAQ: INTC) announced that sales of its cellular modems had increased by 131%, clearly due to its position as a supplier unique cellular modems . ] Apple (NASDAQ: AAPL) the last trio of iPhones. (Intel was one of two suppliers of the last two generations of iPhone.)

While sweeping all of this year's iPhones, Intel's share of modems orders Apple's cell phone is expected to increase significantly over the current iPhone product cycle, Intel's share of the modem in the iPhone is still not 100% – the older families of Apple 7 and 8 do not exclusively use Intel modems.

Image Source: Intel.

If Intel continues to win all modems orders in future iPhones, while older generations of iPhones fall and are replaced by new models, the company could end up with a handful of modems at 100% at Apple in couple.

Below, I will evaluate the share of cellular modem that could win Intel.

Estimated volume of a product other than Intel

Apple does not allocate sales of individual models of iPhone;

Fortunately, Loup Ventures badyst Gene Munster has published his forecast of the percentage of deliveries in fiscal year 2019 (this is the current fiscal year), each model in the current range will be

According to Munster , the iPhone 8 and iPhone 8 Plus combined would account for 13% of Apple's iPhone unit shipments for the 2019 fiscal year and shipments of the iPhone 7 and iPhone 7 Plus should account for 28% of shipments of units during the year. If Munster's forecasts are accurate, it means that 41% of iPhones sold by Apple during the current fiscal year will not be delivered exclusively with Intel modems.

Now, here is where things get more complicated and where more error could occur. to be introduced. Although we know that Intel and Qualcomm (NASDAQ: QCOM) provide modems to the iPhone 7 and 8 series devices, we do not know exactly how the two companies share the orders . . To simplify things, suppose they divide the modem commands for these phones evenly. In this badumption, admittedly rude, Qualcomm would still have about 20.5% of Apple's modems orders during the current product cycle.

Regardless of the actual figure, it is certainly not zero and probably significant, and still represents an additional margin for Intel to increase its share of the modem at Apple over the next two years – baduming that it is a good thing. iPhone 7 – series will be shut down in the next product cycle and the iPhone 8 – series will then disappear one of them, both devices being replaced by products exclusively powered by Intel.

I will closely monitor the evolution of Intel's cellular modems business and will continue to inform you as new data points enter.

Ashraf Ebada owns shares in Qualcomm. The Motley Fool owns shares and recommends Apple. The Motley Fool owns shares in Qualcomm and offers the following options: $ 150 long calls on Apple to January 2020 and $ 155 short calls on Apple to January 2020. Motley Fool has a disclosure policy.