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In 2016, the wireless telecommunications giant Qualcomm (NASDAQ: QCOM) lost its status as a single source of cellular modems within Apple (19459007) (NASDAQ: AAPL) iPhones, when the chip giant Intel (NASDAQ: INTC) became a second modem source for devices in the iPhone 7 series.
Qualcomm remained an iPhone modems provider for the next generation of iPhones. However, Qualcomm was designed from this year's crop of iPhones, made possible by Intel's additional support for the CDMA wireless standard – a standard that some operators still rely on – for its last cellular modem, called XMM 7560. [19659005] Holder of a chip marked "Intel XMM 8160." "src =" https://g.foolcdn.com/image/?url=https%3A%2F% 2Fg.foolcdn.com 2Feditorial%%% 2F501869% 2Fimages 2Fintel-xmm-8160 modem-1.jpg & w = 700 & op = resize "/>
Image Source: Intel
In February, badyst Ming-Chi Kuo, who said at the time that Intel would be the only modems provider for iPhones 2018, said – 9to5Mac – Qualcomm could possibly be re-addressed to the iPhone modem's supply chain.
Here is the summary of Kuo's comments by 9to5Mac :
He now claims that Qualcomm will be excluded from the iPhones of 2018. However, KGI does not rule out that Qualcomm is back in the chain of Supply, perhaps as concessions in the settlement of patent litigation.
KGI states that there is also a risk that Intel is not ready for 5G networking as quickly as Qualcomm, which could also force it. The hand of Apple.
Given the recent evolution of the situation, the chances that Qualcomm will again get orders for iPhone modems in the near future are not very good. Here's why.
Intel's performance seems to improve
Qualcomm is the market leader in cellular modems, but Intel's performance seems to be improving. According to the tests of PC Magazine "the iPhone XS – powered by Intel's XMM 7560 modem – constitutes a considerable advance over the iPhone X with respect to the LTE download speeds, according to new proprietary data Cellular Insights and Ookla Speedtest ".
The site admitted that it "does not quite fit the Qualcomm X20 modem used in the Samsung (NASDAQOTH: SSNLF) Galaxy Note 9." However, the difference in performance seems much lower than that of previous generations of Intel modems, which shows that Intel has improved the competitiveness of its modem technology with the XMM 7560.
Regarding 5G risk put forward by Kuo in February, it should be noted that Intel has recently announced that its modem XMM 8160 5G, the modem reported by Fast Company will equip Apple's 2020 iPhones and is expected to to be marketed in the course of the second half of 2019. in the first half of 2020.
Fast Company also reported that the Intel XMM 8060 5G chip – a chip that, according to Intel, is intended to be used as "development platform" and not as part "This will end up in shipping devices – leads to" heat dissipation problems. "
Keeping this in mind, ] Fast Company said that "Apple's current problems with Intel are not serious enough to get Apple to reopen conversations with Qualcomm about providing 5G modems".
Since Apple is a marathon, not a sprint, Intel can not just take out the XMM 8160 and declare its victory forever. The company must constantly launch modems that meet the requirements of Apple without losing a minute in terms of timing.
However, given that Intel's modem implementation appears to be on an upward trajectory and that, given the current bitter legal controversy between Apple and Qualcomm, the chances that Qualcomm is recovering not soon the activity of Apple's cellular modems.
