Apple Inc.’s next iPhone will use modems from Intel Corp., a move that can be considered a big win for Intel thereby replacing those made by Qualcomm Inc. However, not all Qualcomm modem chips are being replaced by Intel ones across all versions of the next iPhone.
Intel's modem chips will be in iPhones used on AT&T Inc's U.S. network and some other versions of the smartphone for overseas markets. However, iPhones sold in China will use Qualcomm chips, and iPhones on Verizon Communications Inc's network will also stick with Qualcomm.
Apple makes its own processors for its devices, but it relies on companies like Qualcomm to build the modems that connect the phone to wireless carriers' networks. Many handset makers source components from multiple manufacturers to lower their risk. If one chipmaker has issues, not all devices will be impacted. So having multiple suppliers will prevent Apple from finding itself in a position of being powerless in case a supplier decides to increase prices or falls short from providing components.
Samsung, for instance, uses Qualcomm chips in many of its flagship phones but also sells some models with its own processors.
However sourcing chips from different places can lead to discrepancies in performance, though. Apple and Qualcomm declined to comment. Qualcomm's shares fell 1.7 percent on Friday, while Intel's stock was up 0.3 percent. Apple shares were down 0.5 percent in morning trading.
No comments:
Post a Comment