Intel could reap $1.5 billion in revenue from modem orders for the Apple iPhone 7 and iPhone 7 Plus

posted by Alan F. / Jul 11, 2016, 11:37 PM

Intel could reap $1.5 billion in revenue from modem orders for the Apple iPhone 7 and iPhone 7 Plus

Starting last October, and repeated three other times since then, we have passed along a rumor that the Intel 7360 LTE modem would replace Qualcomm's modem inside some Apple iPhone 7 and Apple iPhone 7 Plus units. For some time now, Apple iPhone models have relied on a Qualcomm modem only. But this is one rumor that appears to be coming true.

Cowen and Co. analyst Timothy Arcuri sent out a note to clients on Sunday stating that field checks indicate a larger share of iPhone 7 units will include the Intel modem chip than originally thought. Over the life of the Apple iPhone 7 and Apple iPhone 7 Plus, Arcuri estimates that Intel will provide Apple with 100 million to 110 million 7360 LTE modem chips. That would be double the original forecast that called for 25% of the next iteration of the iPhone to come with 'Intel Inside.' Supplying half of the next generation iPhone units with the 7360 LTE modem could lead Intel to garner $1.5 billion in revenue from the order.

Arcuri believes that by capturing some of the modem business for the iPhone, Intel could find itself eventually integrating its modem into Apple's Ax SoC. Combining the modem chip with the applications processor could save space inside the phone. This would allow Apple to make the device thinner, or allow it to add a higher capacity battery. It also could make the iPhone more efficient, and lower the cost of manufacturing the handset. The analyst adds that Apple might add insult to injury by using Intel's foundry to produce such a chip instead of relying on Qualcomm's production facilities.

source: AppleInsider

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3 Comments

1. sgodsell

Posts: 7208; Member since: Mar 16, 2013

So Apple is only paying $15 each per LTE chip inside each iPhone 7, and that is one of the most expensive chips in any handset.

posted on Jul 12, 2016, 3:43 AM 0

2. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

Great for Intel they are finally braking into the mobile space just not like they hope with SoCs but now with modems. Lets hope that their LTE modes are up to par and don't cause any problems for users. This is a big Gamble for Apple as QC has been producing Modems for decades and have become masters at it. To move away from QC Apple has to be really confident in Intel's capabilities ( design and Manufacturing). Only time will tell.

posted on Jul 12, 2016, 9:32 AM 0

3. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

That tiny space this chip takes up if combined with the SOC isn't going to create a space to increase the battery side of make thrm device thinner. Why do you see the need to make up such BS?the logic board is a certain height, the stiff on the PCB are only going to be so big. The SOC is already the largest thing on the chip. If you add the modem to the soc, the soc will be slightly larger, would it not? I mean we have seen the logic oars of many phones on ifixit. When they point out the modem, it is a tiny thing. I mean at least be realistic. If apple added 2MM to the battery size, what will that get you? An extra 5 mins?