Intel will be supplying Apple with LTE modems for the iPhone 7 and according to the latest analytical data, the supply numbers are much higher than initially believed.
Apple’s iPhone 7 production line might require Intel to manufacture over 110 million 7360 LTE modems. The new estimate is about 25 percent greater, and the data has been obtained from Appleinsider.
The iPhone 7 will be one of the first Apple products in many generations not to come equipped with a Qualcomm modem. The diversity in supply and components is a strategy which has often been employed by Tim Cook, CEO of Apple, ever since he was given the position.
Hello Intel! Goodbye Qualcomm?
Intel manufactured the 7360 LTE modem especially with the iPhone 7 in mind. Presentations and negotiations have been going on between the two companies as early as October 2015. Apple has even committed a number of its engineers to Intel’s facilities in order to ensure optimal compatibility.
Many believe that Intel’s new in will be Qualcomm’s final out and that Apple plans to no longer collaborate in any measure with its previous modem supplier.
The new order numbers will mean Intel will be making over $1.5 billion in revenue. Considering the coverage of development costs, the revenue would translate into operational profits of over $850 million .
Operational profits aside, analysts consider the collaboration between Apple and Intel to be of great psychological value to the latter party, in regards to Intel’s Client Computing Group.
In the future, it is speculated that Apple plans to also adopt Intel’s A-series processor. Intel’s chipset has lower manufacturing costs, higher efficiency scores, and even a more stable architecture.
The first of the iPhone 7 series will be available in September. However, with the rumors of Intel’s A-series chipset possibly coming in future Apple products getting increased validation, the tech-savvy majority of Apple’s client base may be willing to skip the first iPhone 7 model and wait.
Qualcomm has announced a new Snapdragon processor for handheld devices and initial technical reviews are impressive.
As Intel and Qualcomm both develop new, faster, better, smaller technologies, Tim Cook and Apple will gladly wait it out and utilize the better product for their brand.
How do you feel about the 7360 LTE modem from Intel or about the iPhone 7? Let us know.
Image Courtesy of Wikipedia.