Apple Making The Switch, Why The Next iPhone Could Have Intel Inside

The next iPhone will be using modems from Intel Corp. in some versions of its new handsets. The company will be replacing the ones manufactured by Qualcomm Inc. which can be considered a bold move for Apple since they have always used Qualcomm chips.

According to a report by bloomberg.com, Apple has opted to use Intel modem chip for the iPhone used on AT&T Inc.'s U.S. network and other versions of smartphones for overseas markets. However, Verizon Communications Inc.'s iPhones will still use parts from Qualcomm, which is the only provider of the main communications component of current versions of Apple's flagship product.

Information given by people, who asked not to be identified because Apple's plans weren't made public yet, is that iPhones which will be sold in China will work on Qualcomm chips. If this is true, then this will not be the first time that a flagship smartphone will switch different parts in models in different regions. One example is Samsung's Galaxy S7, which is powered by the Qualcomm Snapdragon 820 processor in the U.S., but uses Samsung's proprietary Exynos chipset in Asia and Europe, Tech Times reported.

The major contributing factor in Apple's decision to switch could be to use multiple suppliers which mean that the company is not at the mercy of a single company should it decide to increase prices, Jim McGregor, principal analyst at Tirias Research explained.

An article in pcworld.com said that Intel has also probably offered Apple discounts similar with tablet chips used in Android devices. The article also explained that phone carriers sometimes have a say in the kind of technology used in handsets on their network. McGregor also said that Verizon decided to stick to Qualcomm parts because it thinks the technology is a better fit.

Now that Apple has decided to work both with Intel and Qualcomm for their modem chips, the company will be able to switch to using 5G technology as soon as either company is able to deliver the necessary parts.

The iPhone 7, which will be the first major flagship smartphone that will feature an Intel wireless chip, could not have come at a better time to rejuvenate Intel's business. The company has been struggling for some time, with operating losses being incurred, and the order from Apple would give it a shot in the arm that it really needed.