Intel to Supply Apple With 70% of LTE Chips Needed for 2018 iPhones

[MacRumors]

Intel is planning to supply Apple with 70 percent of the modem chips that will be used in the 2018 iPhone lineup, according an unnamed source that spoke to Fast Company. Qualcomm will allegedly provide the rest.

KGI Securities analyst Ming-Chi Kuo previously suggested Intel might be Apple's sole supplier for LTE modems in 2018 given Apple's ongoing and increasingly tense legal battle with Qualcomm, while The Wall Street Journal said Apple might use Mediatek and Intel chips to avoid working with Qualcomm, but Fast Company says that's not the case.

Intel will supply the lion's share of the chips, but because 2018 is the first year that Intel is fabricating its own chips using its 14-nanometer process, Fast Company's source says Apple plans to continue to use Qualcomm chips in 2018.

Given that technological transition, Apple is apparently waiting to see how well Intel fulfills this year's order. If Intel underdelivers, Qualcomm will make up the balance on top of the 30% it's already planning to provide. There's also a chance that if Intel can produce enough chips on time and on budget it could get more than the planned 70%, our source says.

Intel is reportedly not hitting its expected modem chip yield rates at the current time, with just over half of chips produced coming out in an acceptable quality. Intel engineers are, however, confident that yield rates can be pushed up before production ramps up in the summer months.

While Intel may not be Apple's sole supplier for modem chips in 2018, if its chip production speeds up and kinks are worked out, Apple will transition solely to Intel for its 2019 iPhone lineup, effectively cutting ties with Qualcomm.

Apple first adopted Intel chips in the iPhone 7, released in 2016, moving away from Qualcomm as its sole supplier. Since early 2017, Apple and Qualcomm have been embroiled in a bitter legal battle, which has led to Apple's efforts to cease using Qualcomm chips all together.

Article Link: Intel to Supply Apple With 70% of LTE Chips Needed for 2018 iPhones

 

[adamski23]

The hunt for the elusive Qualcomm phones

 

[Andres Cantu]

Things will still be interesting this year, because the rumor is that the Intel modem WILL support CDMA for Verizon and Sprint, which means that Apple needs Qualcomm this time around only for more supply and not also for the lack of CDMA support from the Intel modems.

Still, there's nothing worse than unannounced differences for customers (such as the A9 TSMC vs. Samsung models or the more recent Intel vs. Qualcomm models from the iPhone 7/8/X).

 

[fairuz]

Qualcomm asked for it. I think it's safe to say Steve Jobs would have let this happen.

 

[Will.O.Bie]

Wow! How is that gonna work if you try and go back to the supplier you are suing? Awkward!

More importantly, what are the chances those chips will fail and get pulled back in production with delays till 2019? Hopefully, the brains at Intel pulls a rabbit out of a hat and I'll be happy with the announcement of the X Plus.

 

[pika2000]

Wonder how will this relate to the rumored dual SIM iPhone.
It is interesting watching the corporate strategy of Apple moving away (or trying to) from partners they have worked closely together before, like Google (maps), Samsung (screens, chips) , and now Qualcomm (modem).

 

[darkelipse04]

Which Qualcomm modem would be suitable for the next iPhone? I believe the intel XMM 7560 is the other modem.

 

[jntdroid]

Love ‘em or hate ‘em, Qualcomm has had years to perfect the LTE handoff on CDMA, and I don't know if I trust Intel with that yet. Could be a non-issue, but that’s my concern personally.

 

[Ds6778]

While in no fan of Qualcomm, it’s kind of annoying that Apple is willingly using an inferior modem. Didn’t I read another article/post stating that Apple actually gimped the current Qualcomm modem so it wouldn’t outshine the Intel one?

 

[TC_GoldRush]

Great... Now their phones are making the switch to Intel. 2006 anyone?

 

[Kaibelf]

While in no fan of Qualcomm, it’s kind of annoying that Apple is willingly using an inferior modem. Didn’t I read another article/post stating that Apple actually gimped the current Qualcomm modem so it wouldn’t outshine the Intel one?

If they successfully get Qualcomm to change tactics and stop with their royalty situation, it would have been worth it in the end. If not, then the Intel modems aren't materially affecting iOS device sales so Apple can eventually drop them without losing much, but Qualcomm will face years of depressed business as they will still be essentially fighting with every one of their major customers.

 

[TheYayAreaLiving 🎗️]

So, if I would like to obtain a Qual model phone how can I secure one during pre order day?

 

[TantalizedMind]

So are you guys saying that the current iPhone 8 Plus and/or iPhone X for Verizon (CDMA) only have Qualcomm chips?

Or does Intel make them too?

 

[Sappharad]

So are you guys saying that the current iPhone 8 Plus and/or iPhone X for Verizon (CDMA) only have Qualcomm chips?

Or does Intel make them too?

Intel does not make the chips in any of the current CDMA models. The Intel modem being used is older and didn't support it yet.

 

[JPack]

Sounds similar to the A9 production that was shared between 16nm TSMC and 14nm Samsung.

Eventually TSMC won all of Apple's orders and became the sole supplier for A10 and onward. Keep in mind the Samsung process was slightly better compared to TSMC in terms of die size. But TSMC proved to be a better long term partner due to having a better roadmap.

 

[yeah]

Hopefully the Intel modems and iPhone antennas are drastically improved. 4x4 MIMO and Band 71 will be a welcome addition!

 

[rjohnstone]

Even if Intel starts making CDMA capable modems, Qualcomm still gets paid.
They own a huge chunk of CDMA patents.
Heck Qualcomm still gets a piece of every Intel modem sale due to the SEP licenses.

 

[TantalizedMind]

Intel does not make the chips in any of the current CDMA models. The Intel modem being used is older and didn't support it yet.

So I guess if I want to make sure I have a iPhone with a good chip/modem I better buy a current model rather than waiting 5 months in case they do put Intel “inside” (LOL) the new 2018 CDMA iPhone(s).

 

[JPack]

Even if Intel starts making CDMA capable modems, Qualcomm still gets paid.
They own a huge chunk of CDMA patents.
Heck Qualcomm still gets a piece of every Intel modem sale due to the SEP licenses.

Right now, none of Apple's suppliers are paying the royalties to Qualcomm. Intel is part of the group that has accused Qualcomm of being anti-competitive.

 

[Abazigal]

While in no fan of Qualcomm, it’s kind of annoying that Apple is willingly using an inferior modem. Didn’t I read another article/post stating that Apple actually gimped the current Qualcomm modem so it wouldn’t outshine the Intel one?

It’s called making the wrong move now so that they can make the right move in the future.

 

[bt231]

This tells me once again how once mighty Intel's manufacturing has fallen so deep. Barely 50% yield using its own 14nm process? And presumably still not the same quality as Qualcomm's, manufactured by TSMC or Samsung. No wonder no one want to use their foundry business.

 

[jecowa]

It sounds like there is already some information out about the modems being used in the next generation of iPhones. Do we know if they will have 5G?

 

[JPack]

It sounds like there is already some information out about the modems being used in the next generation of iPhones. Do we know if they will have 5G?

No, the XMM 7560 will offer Gigabit LTE.

 

[jecowa]

No, the XMM 7560 will offer Gigabit LTE.

That sounds great! I think the original iPhone X is only like 200 Mbps.

 

[KiwiAdventure]

An unnamed source. What dribble is this is.