Intel May Lose Apple Modem Business to MediaTek

[MacRumors]

Apple may choose to use modems manufactured by MediaTek instead of modems from Intel in future iPhones, according to an investor's note from Northland analyst Gus Richard that was shared by Bloomberg.

Little detail was included in the note, but Richard believes Apple could be planning to shift its modem business away from Intel. The accuracy of that prediction is questionable, however, and there's no clear timeline on when Apple might be planning to make the shift. Presumably this would impact 2019 iPhones, as deals for 2018 iPhones are established.

For many years, Apple relied solely on Qualcomm chips, but added Intel as a manufacturer a couple years ago. Current iPhones use LTE chips from both Qualcomm and Intel, but Apple is embroiled in a lawsuit with Qualcomm and is rumored to be aiming to ditch Qualcomm chips, too.

Given the sheer number of iPhones Apple produces each year, it's not clear if Apple could rely on MediaTek as sole supplier for its LTE chips, so the conflicting rumors of Apple cutting ties with both Intel and Qualcomm are somewhat confusing.

Apple is developing its own modem chips to reduce its reliance on both Intel and Qualcomm, but it will need to continue to use third-party chips until its in-house solution is ready to be deployed in iOS devices.

Current rumors suggest Intel will supply approximately 70 percent of LTE chips set to be used in the 2018 lineup, with the rest of the chips continuing to come from Qualcomm.

Apple is also moving away from Intel chips in its Mac lineup, with rumors suggesting the company is developing its own custom Mac chips that could be deployed as early as 2020.

Article Link: Intel May Lose Apple Modem Business to MediaTek

 

[pika2000]

Multi-sourcing of components is nothing new for Apple, not really news here (other than maybe to speculate on intel's stock).

 

[NIKKG]

If I was Intel, I'll tell Apple to screw off if they gonna play that game. All that money intel is pouring in r&d and machinery and Apple is gonna just play them for a fool. Not worth the investment, let them go back to Qualcomm.

 

[yeah]

Or, you know... make your own modems.

 

[now i see it]

Apple is also moving away from Intel chips in its Mac lineup, with rumors suggesting the company is developing its own custom Mac chips that could be deployed as early as 2020.

There's zero evidence to back up that claim. All speculation. But this is Mac Rumors so anything goes

 

[benroberts3]

Fake news. Will never happen. MediaTek chipsets for LTE don’t come anywhere close to what Intel and Qualcomm offer.

 

[FFR]

I’m pretty sure Apple will stick with intel atleast for the next two iPhones.

 

[BeSweeet]

Good. Intel's cellular, Wi-Fi and Bluetooth radios have generally always been subpar compared to competitors.

 

[Michael Scrip]

If the rumor is true... I bet the folks at MediaTek are celebrating about receiving an order for 100 million modems next year.

And possibly 200 million if Apple leaves Intel and Qualcomm.

Gosh... my mind hurts thinking about producing 200 million parts... and the fact that each iPhone has 50+ parts.

Crazy!

 

[macduke]

Oh wow, I didn’t realize Apple was working on their own modem chips. Given what they’ve done with the A-series and the W-series (which is still new but surprisingly great), I’m really looking forward to seeing what they’re able to deliver! Where it will get tricky is trying to work with or around all the cellular patents.

 

[Kaibelf]

If I was Intel, I'll tell Apple to screw off if they gonna play that game. All that money intel is pouring in r&d and machinery and Apple is gonna just play them for a fool. Not worth the investment, let them go back to Qualcomm.

And this simplistic reaction is exactly why you'll never run a successful multinational company. Business and capitalism aren't about some bizarre loyalty or friendship structure. They are ultimately about one thing: profit. If Intel did something like that, they would lose because Apple would just turn to their competitors for all chips outside of processors and likely accelerate the move to ARM completely. They could even potentially tap AMD for processors and give them an enormous leg up.

 

[technole]

It takes courage to want to develop your own modem chips.

 

[NIKKG]

And this simplistic reaction is exactly why you'll never run a successful multinational company. Business and capitalism aren't about some bizarre loyalty or friendship structure. They are ultimately about one thing: profit. If Intel did something like that, they would lose because Apple would just turn to their competitors for all chips outside of processors and likely accelerate the move to ARM completely. They could even potentially tap AMD for processors and give them an enormous leg up.

Apple is pretty much out of the pc business as is, don't think it's that big of a deal for Intel. Right now, Intel is putting alot of money and resources to develop modems, for Apple to just walk away from them after a year or two is not good allocation of resources for Intel. I'm sure they got a multi year agreement so Intel can recoup their investment.

 

[Tubamajuba]

Apple is pretty much out of the pc business as is

Ah, this explains your "screw off" remark in your first comment. You're extrapolating your personal frustrations with Apple onto a multinational profit-driven corporation.

 

[alien3dx]

lol . apple using mediatek ? better i'm stuck with old 5s

 

[elvisimprsntr]

Likely scenario is Apple is ditching QCOM, and dual sourcing from INTC and MDTKF. Or more likely someone is pump-n-dump'n MDTKF stock.

 

[makitango]

MediaTek, lol. Reminds of the old days when onboard chips from MT were the worst of their kind.

 

[pat500000]

Intel fell off.

 

[alien3dx]

MediaTek, lol. Reminds of the old days when onboard chips from MT were the worst of their kind.

mediatek just target cheap phone quad core phone. For gaming still okay old times. But 5S still survive upon this year compare to my new android 300 sub par phone..

 

[Pupi]

Good. Intel is crap. They ruined Mac’s iGPUs, they are ruining iPhone’s modems, and their CPU release schedule is hit or miss. Hate that company.

 

[alien3dx]

Good. Intel is crap. They ruined Mac’s iGPUs, they are ruining iPhone’s modems, and their CPU release schedule is hit or miss. Hate that company.

still can play fortnite.. but have to close all program . Don't hate intel unless you want new apple to be amd threadripper
+ vega m ..

** baseline 2017

 

[macintoshmac]

It will be nice to see Apple using its own chips once again after decades (talking about the mac).

 

[pika2000]

If I was Intel, I'll tell Apple to screw off if they gonna play that game. All that money intel is pouring in r&d and machinery and Apple is gonna just play them for a fool. Not worth the investment, let them go back to Qualcomm.

In business, it goes both ways. Apple has a really large volume of order, and if intel just passed on that, I’m sure their board of directors would question someone why intel passed up on such a huge revenue. Hard feelings don’t usually count as an excuse. The issue is most likely intel can not deliver enough volume, thus its normal for Apple to source other companies. They already did this to pretty much all the major components in the past (DRAM, screen, the A chip itself, etc).

 

[TimmeyCook]

Not a chance!

Not a single chance!

Mediatek is crappy and Trump would not like this Chinese matrimony one bit.

This is just stock manipulation, MacRumors should take a step and not publish what this is.

 

[PickUrPoison]

<snip>
Apple is also moving away from Intel chips in its Mac lineup, with rumors suggesting the company is developing its own custom Mac chips that could be deployed as early as 2020.

Not “Apple is also moving away” but “Apple might be” or “Apple could be” or “Apple may be”.