Report: Apple may have to keep Qualcomm around for 2018

Report: Apple may have to keep Qualcomm around for 2018
A new report from Fast Company has surfaced claiming that Apple will continue to rely on Qualcomm this year, with a hopeful switch to intel by 2019. Intel began working with Apple within the last few years but Qualcomm received the lion's share of the business. That was it seems, until things heated up between the chipmaker and Apple. It is no secret that Apple has been pushing towards fully adopting Intel hardware, but wariness over supply appears to be keeping the entire move from taking place this year. The report shows that Apple is planning on having Intel supply 70 percent of the chips this year. The remaining 30 percent will fall to Qualcomm, with the possibility of providing even more if Intel fails to deliver. It is still possible that Intel will provide even more than the forecasted amount, but the report cites a source claiming it may in fact be lower. 

why the delay? 


Intel is building chips with a new process. Since they are just starting this process, confidence is not high that they can deliver the massive amount of hardware needed to keep up with the product launch. Although Apple may be eager to cut ties with Qualcomm, rationality seems to be winning for now. It is important to note that the original iPhone chipmaker was bought by Intel years ago, just as Apple Switched to Qualcomm (2011). Two cycles ago Apple rekindled the relationship and has slowly been phasing Qualcomm out. The report was later updated to show that Qualcomm dropped projected revenue from its business with Apple from its first-quarter earnings report. This makes sense, since so much rests on how many chips Intel successfully cranks out and there is an end in sight for the relationship altogether. This news comes on heels of news regarding business dealings between the chipmaker and ZTE as well. 

source: Fast Company via 9to5Mac

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8 Comments

1. sgodsell

Posts: 7365; Member since: Mar 16, 2013

Qualcomm doesn't need Apple. It's Apple that needs Qualcomm. Plus Apple still has to pay Qualcomm for all the parts they have used since Apple has stopped paying Qualcomm. I know that they have to settle this in court still.

3. Phullofphil

Posts: 1789; Member since: Feb 10, 2009

Apple set the money aside to pay them the whole time. It’s a principal of it. By the way any body that gets a contract for the Apple I phone should make a good profit. Before you say that the iPhone did not sell well rember the downturn in sales is almost on par to what it should be so I think they all need each other but it’s in appl s best interest to have more suppliers and Qualcomm is a darn near a patent troll in my opinion.

4. sgodsell

Posts: 7365; Member since: Mar 16, 2013

Oh, like Apple isn't a patent troll. Apple is the king patent troll. They sue any and all. Samsung doesn't buy or use any components or parts from Apple, so Samsung doesn't need Apple. As far as the sale of parts to Apple. The most expensive part is the display on the iPhone X, and that costs Apple roughly $70 per panel. If Apple sold 50 million iPhone X's, then that would only be 3.5 billion to Samsung smartphones for those panels. That is not a large amount. Especially if you look at Samsung's sales. Not to mention the 320 million smartphones that Samsung sold last year.

8. sgodsell

Posts: 7365; Member since: Mar 16, 2013

Qualcomm doesn't make screens we get that, but their most expensive components are their SoCs which are in the $20-$40 range. Apple doesn't use those parts. Apple uses their modems (LTE), and maybe a few other related chips. Qualcomm holds patents for a number of WiFi and GPS related things as well. So the cost per iPhone would be less than $10 per unit to Qualcomm. Apple nickles and dimes everyone. They are looking to drop 10% off the price of the OLED displays from Samsung. Yet do the customers see those savings. Nope, never. Apple is all about sticking it to everyone else, except their share holders.

2. hazard1

Posts: 236; Member since: Feb 11, 2017

This is actually one thing I agree with Apple on. Qualcomm is bad for the industry. Hopefully when CDMA is phased out there will be more competition from other chipmakers. I am not sure if that will be the case, but I hope so.

6. ph00ny

Posts: 2031; Member since: May 26, 2011

Guess what? Qualcomm has ton of patents in 5G. Same goes for Samsung

5. monkeyb

Posts: 413; Member since: Jan 17, 2018

Fans on both sides need to understand: - Apple does not need Qualcomm if Intel ramps up production by solving issues in production using 14nm process. (Win-Apple) - Qualcomm has many other customers apart from Apple where they can sell their chips. (Win-Qualcomm) - The new Intel chip is vastly superior than the intel chip present in A11 series, hence real world difference between Intel's chip and Qualcomm's chip in A12 would be very minimal compared to A11.(Win-Apple) - 2G is phased out in US. GSM/CDMA are next to be phased out. Once this is done, Apple will not need CDMA support from Qualcomm anymore. There is a chance that MediaTek or Samsung will be a 3rd contestant in providing baseband chips to Apple. (Win-Apple) - 5G advancement will decide who rules the baseband chip industry. With CDMA out and more competition we could see a great improvement in telecommunication in the coming years. (Win-Consumer :))

7. xfire99

Posts: 1205; Member since: Mar 14, 2012

Theirs evil plan with Broadcomm fails and now crawling back once to Qualcomm. Deja Vu as Samsung. Qualcomm can now make a move to charge them more than before. At least until both goes separate ways.

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