Apple to continue relying on Qualcomm for 30 percent chip supply

Apple Inc is expecting around 70 percent supply of the modem chips from Intel in the new iPhone models. Meanwhile, Qualcomm will only supply 30 percent of the chips to the 2018 iPhones.

By Karan
|

Apple Inc is expecting around 70 percent supply of the modem chips from Intel in the new iPhone models which will debut in 2018, and if everything goes well and good then the company will rely on Intel for 100 percent of the modems for the 2019 iPhones.

Apple to continue relying on Qualcomm for 30 percent chip supply

 

A new report from Fast Company claims that Apple will continue to rely on Qualcomm this year, and will switch to Intel by 2019. Intel started working with Apple within the last few years. The first Intel modem chip was introduced with Apple iPhone 7.

On the other hand, Qualcomm plays a major role in providing chips to Apple since 2011. However, the relationship between the two giant company become debatable in the last two year. There are several legal disputes happened between the two companies.

Apple sued Qualcomm for the patent licensing fee issue, and Qualcomm also lodges a lawsuit against Apple for sharing Qualcomm's data with Intel.

Intel had got the opportunity to provide a higher percentage of modems to the new iPhones which are going to launch this year. Meanwhile, Qualcomm will only supply 30 percent of the chips to the 2018 iPhones. This is the first year when Intel will fabricate its own modem chips using its 14 nanometer process.

Fast company's report says, "Given that technological transition, Apple is apparently waiting to see how well Intel fulfils 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 the budget it could get more than the planned 70%, our source says."

It's been reported that Intel is unable to fulfil the expected modem chip yield rates currently. However, the Intel engineers are confident enough that they will manage to push the yield rates before the production ramps up in the summer.

 

Let's see how Intel will grab this chance of being Apple's sole supplier of modem chips and replace Qualcomm. Meanwhile, Qualcomm is also struggling with the acquisition. Earlier we have reported that how the company fired its employees for cut down the cost.

Source

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