According to KGI Securities analyst Ming-Chi Kuo, there is a high chance that Intel can replace Qualcomm to become the main supplier for Apple starting this year! Scroll down for more information!

Intel to replace Qualcomm as Apple’s future Supplier!

It seems like Apple is up for a significant change in 2018. Regarding their chipset, this US tech giant has relied on Qualcomm to produce the processor for their models. However, their partnership turned sour last year when Apple accused Qualcomm of overcharging. In details, Apple stated that Qualcomm has increased the chipset’s price chips and refused to pay $1 billion in promised rebates. To reduce the cost of future iPhones production, Apple is now on the search for a new supplier.

Of all the company, Intel can be the next partner that Apple needs. Moreover, they can offer many benefits to Apple. Firstly, Intel has released a powerful modem XMM 7560. This processor can supports both GSM and CDMA; while the previous models only supported GSM connections. As a result, it can play a big role for Apple iPhones global launch. Secondly, as mentioned above, Apple might ditch Qualcomm due to their long-run battle that begun last year and lasted until now.

On the other hand, Intel is not a stranger when it comes to supplying Apple iPhone’s modems. Previous, they have been a supplier for the US smartphone manufacturers, but on a smaller scale. Furthermore, Apple is going to save more than $100 million in the next iPhone cycle by moving to cheaper modem chips, said by Nomura analyst Romit Shah. Additionally, Intel’s modem is going to support dual SIM and dual standby for future iPhones. On the contrary, Ming-Chi Kuo also mentioned about some risks from Apple and Intel’s partnership. There is a possibility that Intel may not be ready for 5G networking as quickly as Qualcomm.

Who is going to be Apple’s final choice: Qualcomm or Intel?

For now, Apple and Intel offer no comment on the claim. On the other hand, Qualcomm market shares have dropped 2% since the statement came out. We will keep you update on Apple’s final decision once more information released. Stay tuned!