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Intel Tipped To Lose Apple Modem Contract

Topping off a tough week, recent reports claim Intel is likely to lose its lucrative modem contract with Apple. The iPhone manufacturer is tipped to replace Intel smartphone modems with ones manufactured by MediaTek.

With 2018 iPhones agreements already in place, consensus is the swap could take place next year.

According to Bloomberg, Apple is also preparing a widespread shift away from Intel components – a rapid contrast to its stance years ago.

Commentators claim when the PC market was in decline, Apple largely ‘rescued’ Intel, integrating components into Mac computers.

Recent reports reveal Apple is developing its own custom Mac chips, which may replace Intel hardware by 2020.

Whilst current iPhones incorporate both Qualcomm and Intel LTE chips, commentators predict Apple could move away from both suppliers, following its ongoing lawsuit with Qualcomm.

Some analysts do question MediaTek’s capabilities to serve as sole iPhone LTE chip supplier, given volume requests.

As previously reported, Apple is currently developing its own smartphone modem chips, however, will be reliant on third-party chips until it’s in-house product is ready.

Concerning 2018 iPhones, Intel will reportedly supply 70% of iPhone LTE chips, with Qualcomm the remainder.

As previously reported, the news follows the departure of Intel CEO, Brian Krzanich, following revelations of his relationship with an employee – news which cause the company’s stock to drop by 2%.

As an added taunt to Apple, on Wednesday Intel announced it had poached Apple veteran, Windows Snyder, as its first Chief Software Security Officer.

 

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