Qualcomm shares fall as reports say Apple may scrap its chips

06 February, 2018, 15:29 | Author: Elena Summers
  • 2018 iPhones to rely solely on Intel baseband chips, KGI claims

As of now, the renowned analyst, Ming-Chi Kuo from KGI securities has once again made some interesting predictions saying that "Apple's 6.1-inch LCD model could reshape sentiment in 2018".

As legal action between Apple and Qualcomm intensifies with billions of dollars at stake, a report on Monday claimed that the iPhone maker will use Intel baseband chips for its devices in 2018. At most, the expected changes will be minimal, except for an increase in battery capacity by 10 percent with the new two-cell L-shaped iPhone battery, Tech Radar reported. Now, with only one supplier, the iPhone's performance might be slower with the Intel chip, but at least it should be consistent and without any speed comparisons like it faced when Qualcomm was a co-supplier.

In a detailed note citing extensive channel checks with chip suppliers, brokerage Nomura Instinet said it anticipated that Apple would drop Qualcomm in favor of a handful of other suppliers, as it seeks to reduce materials costs for iPhones.

In its latest lawsuit, Qualcomm has accused Apple of sharing its proprietary code with Intel. Apple initially agreed, and even extended that contract, but in 2016 it balked and began mixing Qualcomm and Intel parts.

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Intel is also said to be offering more competitive prices. Apple and Qualcomm are in a legal battle right now about the licensing fees Qualcomm charges Apple. Baseband chips on an iPhone is where all radio functions which require an antenna are managed.

Apple is able to make the switch because of the capabilities of Intel's latest XMM 7560 modem, which now supports both GSM and CDMA. After losing the iPhone business, Qualcomm will be more aggressive in securing orders from Chinese smartphone vendors. When things didn't go Apple's way, the company chose to wage war and Qualcomm retaliated in kind. Apple is known to not rely on a specific partner as well so if anyone is thinking that Intel will be on board exclusively for a long time, you might be wrong.

Sector analysts have said in the past that Intel may not be as well prepared for 5G networking as Qualcomm and that iPhones with Qualcomm chips have performed better than models running on Intel chips.

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