Published in Mobiles

Intel will not get a big slice of iPhone 7

by on19 April 2016

Qualcomm still favoured

While it had been expected that Chipzilla was going to score a huge win by taking some of Qualcomm’s modem business, it looks like things might be a little more modest.

Canaccord Genuity analyst Mike Walkley forecasts Intel is likely to get only 30 million to 40 million of the iPhone chipset orders, with Qualcomm retaining the remainder. Apple is expected to sell 250 million iPhone 7s, although we are expecting numbers to actually turn out lower than previous years.

Qualcomm will make up for any lost revenue thanks to strong growth in its patent licensing division among other areas, Walkley said. He thinks Apple is doing is diversifying its suppliers for key iPhone components like the wireless modem, but Qualcomm retains some proprietary standards in its chipsets, preventing Intel from capturing too much of the business.

Most analysts looking at Chipzilla’s efforts think we will have clearer information when reports its first quarter results later today and could offer some clues about the potential Apple business. Intel’s mobile division has been kicked to death over the past few years, losing $4 billion of red ink in 2014. Getting under the bonnet of the iPhone obviously could help turn things around – if it sells of course.

BlueFin Research Partners analyst Steve Mullane thinks Intel will get its 7360 modem chip into the iPhone 7, but only that chip, and only in about 30 per cent of the handsets. However he thinks that is not bad because it gives Intel a foot in the door for future gains later.

Last modified on 19 April 2016
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