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

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macrumors bot
Original poster
Apr 12, 2001
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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

macrumors regular
Jul 19, 2012
151
0
They could do anything, at anytime, with anyone.
But that doesn't mean they will.
 

ArtOfWarfare

macrumors G3
Nov 26, 2007
8,833
4,582
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-
 

samcraig

macrumors P6
Jun 22, 2009
16,637
41,605
USA
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

macrumors 65816
Jun 29, 2007
1,473
356
So years of CPU development throw away only to have another CPU, cheaper and creating more segmentation? Yea, looks like an Apple plan
 

macs4nw

macrumors 601
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

macrumors 68030
Jan 19, 2006
2,760
0
Sydney
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.
 

Mebsat

macrumors regular
May 19, 2003
177
49
Florida
Makes sense

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.
 
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theotherdell

macrumors newbie
Jan 28, 2013
6
0
Doubt

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.
 
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