Apple to Use Qualcomm Processors for Low-Cost iPhone for Emerging Markets?

[MacRumors]

Forbes reports that analysts at Detwiler Fenton believe Apple is working on a low-cost iPhone that uses a Qualcomm Snapdragon processor rather than the Apple-created processors that the company is currently using for the iPhone.

"It is likely that the work with QCOM is being driven by AAPL's concern regarding maintaining gross margins as well as the need to differentiate the product by performance," the research firm (which shuns putting the spotlight on particular analysts) said in a research note. "AAPL would not want a value priced iPhone to offer the same kind of graphics and video support, processing power etc. that its premium priced device would, therefore a less powerful lower-end Snapdragon integrated solution would help segment the product."

Detwiler adds that using a Snapdragon processor would allow Apple to integrate Bluetooth and Wi-Fi into the processor, which would allow for a lower-cost single chip rather than three separate chips. Apple has been rumored for years to be looking at creating a low-cost iPhone for emerging markets, but the rumors have accelerated in recent weeks amid suggestions that such a device could launch later this year.

Apple has invested significant amounts of money and people into its own chip design efforts, and the company has typically been willing to user older-generation chips in its lower-priced products as a way to cut costs. Consequently, Apple would seem to be more likely to pursue that route for a low-cost device rather than tapping an all-new partnership for the main chip with Qualcomm.

Article Link: Apple to Use Qualcomm Processors for Low-Cost iPhone for Emerging Markets?

[Nathan20]

They could do anything, at anytime, with anyone.
But that doesn't mean they will.

[Saladinos]

BS.

If there's a cheaper iPhone, it'll use an AX chip. Guaranteed.

[Skika]

Originally Posted by Nathan20

They could do anything, at anytime, with anyone.
But that doesn't mean they will.

What is rumors?

[adildacoolset]

The rumours become increasingly stupid.

Next thing you know, someone will claim Apple will ship it with android OS, using an iOS-like skin.

[ArtOfWarfare]

Originally Posted by adildacoolset

The rumours become increasingly stupid.

Next thing you know, someone will claim Apple will ship it with android OS, using an iOS-like skin.

I think MacRumors has accidentally started tracking a Apple-Knock off company who is indeed planning to release exactly that this year. They'll call it the iPhone 5-

[M-O]

Originally Posted by Nathan20

They could do anything, at anytime, with anyone.
But that doesn't mean they will.

Apple releases $49 Android smartphone.

[samcraig]

Just think if this becomes true...

A few years from now - there will be a bunch of people on here bemoaning how Samsung and other Android manufacturers copied Apple by using Snapdragon....

[oliversl]

So years of CPU development throw away only to have another CPU, cheaper and creating more segmentation? Yea, looks like an Apple plan

[macs4nw]

Originally Posted by oliversl

So years of CPU development throw away only to have another CPU, cheaper and creating more segmentation? Yea, looks like an Apple plan

Your guess is as good as mine but, I'm gonna be the devil's advocate here and counter, that with a less expensive phone they could have explosive growth in emerging markets, (that are largely pre-paid), while maintaining profit margins, something that, judging by AAPL's recent stock plunge, would be welcome news for both APPLE as a company and investors alike.

An APPLE ecosystem gateway, if you will, for less affluent, but enormous societies. I'm thinking win-win here.
They can still have their top-notch components for the more established, and demanding, markets.

[MattInOz]

If it can be integrated in to snapdragon why couldn't apple just license the blocks for integration into the Ax range?
Then they would get the same cost and size saving in all iDevices not just the low end.

[Technarchy]

I am skeptical.

AX would make more sense.

[Mebsat]

As odd as it sounds, it could make a lot of sense.

1) Apple wants to lower its costs for phones in emerging markets
2) Older AX chips don't have the features
3) They are not going to add those features to older chips
4) Even if the older chips could be used, if they want to make a lot of phones for emerging markets, they really don't want to have their production lines bogged down making low margin components.
5) It's still OSX/iOS, Apple probably has ports on lots of platforms ready to go (e.g. OSX on Intel project)
6) Any performance hits would be appropriate for the cheap model, with the flagship iPhone with A6(A7...) as the aspirational product

Detwiler adds that using a Snapdragon processor would allow Apple to integrate Bluetooth and Wi-Fi into the processor, which would allow for a lower-cost single chip rather than three separate chips.

[Technarchy]

Well, as we learned from android, nothing says cheap like a snapdragon...

[theotherdell]

I haven't invested in AAPL so I may be way off the mark here, but I'd expect many investors to jump ship BECAUSE of the rumours of budget versions of Apple devices.