Intel to supply Apple's modems

[jhu]

Or so it is rumored.

The story says Apple will begin using Intel’s new 7360 LTE modem processor in place of a Qualcomm chip, which has been there for a few generations.

Intel's modem chip business comes from Infineon, a German chipmaker Intel acquired in 2010. It would be something of a homecoming for Intel, as the first three iPhone models used Infineon 3G modems. Apple dropped the Infineons in favor of Qualcomm after Intel purchased Infineon.

Bet they're still ARM-based.

 

[DrMrLordX]

That's interesting. I was going to say, "gee, why is Apple letting Intel get so close to their phone/tablet ecosystem", but it's just a modem and it gives Apple bargaining leverage. So, it sort of makes sense.

 

[FwFred]

...

 

[Idontcare]

That's interesting. I was going to say, "gee, why is Apple letting Intel get so close to their phone/tablet ecosystem", but it's just a modem and it gives Apple bargaining leverage. So, it sort of makes sense.

Supply chain risk management. Good companies talk about it, great companies do it.

 

[Arachnotronic]

Supply chain risk management. Good companies talk about it, great companies do it.

Apple's supply chain strategy is pretty phenomenal. Everyone is groveling to supply Apple parts, and they're willing to eat dirt for margins just to win the business.

 

[mrmt]

Apple's supply chain strategy is pretty phenomenal. Everyone is groveling to supply Apple parts, and they're willing to eat dirt for margins just to win the business.

Given the sore state of Intel mobile business, if Intel won't pay contrarevenue to Apple it is already a win.

 

[witeken]

Given the sore state of Intel mobile business, if Intel won't pay contrarevenue to Apple it is already a win.

People still don't understand contra-revenue?

If you don't understand what something is, then don't comment on it. It's like those people denying evolution.

Core M doesn't have contra-revenue, SoFIA doesn't, Intel's modems don't. And neither does HSW-U Celeron, which is found in $250 Chromebooks.

 

[mrmt]

People still don't understand contra-revenue?

If you don't understand what something is, then don't comment on it. It's like those people denying evolution.

Core M doesn't have contra-revenue, SoFIA doesn't, Intel's modems don't. And neither does HSW-U Celeron, which is found in $250 Chromebooks.

I'm just pointing out that it's good to see Intel actually fielding competitive mobile products, and even with low margins it is a win for Intel.

No need to question my knowledge about Intel contrarevenue. I know what I'm talking about. Core M, Sofia 3G and others won't make a dent in Qualcomm sales. Sofia 4G and the LTE modem will.

 

[exar333]

Supply chain risk management. Good companies talk about it, great companies do it.

This.

I don't think you can underestimate the importance of this agreement between Apple and Intel.

Much of Qualcomm's success on the SoC front has been directly due to their modems. Often, the OEM can just get Qualcomm's latest whole ARM solution vs. just the modem for a much more palatable price. Intel partnering with other companies to incorporate their modems into other x86 or ARM choices is a huge competitive benefit to the market and you likely start seeing a lot more differentiation on SoC choices here.

I know 'competition drives innovation' is really spewed way too much, but Intel making compelling modems is great for the industry IMHO. It will be interesting to see how Qualcomm responds. Their SKUs following the fantastic Snapdragon 800 have been pretty lackluster.

 

[lefty2]

According to an Eetimes article there *is* contra revenue involved in the deal:

Intel would offer Apple their modem for close to cost, just to get the socket and the cred that would go with it. And that would be enough volume to finally make it reasonable to equip Intel's newest, but empty, fab in Chandler, AZ with a low-power CMOS process (rather than use TSMC as they now do for their modems).

http://www.eetimes.com/document.asp?doc_id=1326025&

 

[Arachnotronic]

According to an Eetimes article there *is* contra revenue involved in the deal:

http://www.eetimes.com/document.asp?doc_id=1326025&

Oh, I didn't know that the financial details of this not-even-official-yet arrangement were known.

Also, the modem that is reportedly going into the next iPhone is built at TSMC. It won't be until XMM 7460 that Intel moves that modem in-house.

 

[witeken]

I'm just pointing out that it's good to see Intel actually fielding competitive mobile products, and even with low margins it is a win for Intel.

No need to question my knowledge about Intel contrarevenue. I know what I'm talking about. Core M, Sofia 3G and others won't make a dent in Qualcomm sales. Sofia 4G and the LTE modem will.

Sorry for my misunderstanding of your comment.

 

[mrmt]

According to an Eetimes article there *is* contra revenue involved in the deal:

http://www.eetimes.com/document.asp?doc_id=1326025&

How so?

 

[witeken]

How so?

Good article though, certainly the part about Infineon-Intel.

 

[mrmt]

Good article though, certainly the part about Infineon-Intel.

I didn't see anything about contra revenue.

 

[Arachnotronic]

I didn't see anything about contra revenue.

I think lefty2 misinterpreted the assertion from Strauss that Intel would sell the modems at "near-cost" as "contra-revenue."

 

[witeken]

I didn't see anything about contra revenue.

Neither did I.

 

[lefty2]

I think lefty2 misinterpreted the assertion from Strauss that Intel would sell the modems at "near-cost" as "contra-revenue."

That means they lose money on the deal

 

[Arachnotronic]

That means they lose money on the deal

Proof?

 

[lefty2]

Proof?

If you sell at manufacture cost price you always lose money

 

[erunion]

Oh, I didn't know that the financial details of this not-even-official-yet arrangement were known.

Also, the modem that is reportedly going into the next iPhone is built at TSMC. It won't be until XMM 7460 that Intel moves that modem in-house.

It was a hypothetical, the interviewee said that would be the case IF the rumor was true.

We've seen a lot of intel/apple rumors lately. they've all been bogus so far; like apple rumors tend to be.

I'm going to go out on a limb and say Intel modems wont be in the iPhone in 2015.

 

[Arachnotronic]

If you sell at manufacture cost price you always lose money

The word used was "near" not "at".

Anyway, Strauss in this case was giving a hypothetical -- he wasn't saying that this is what is actually going on (if this deal is even real).

 

[frozentundra123456]

If you sell at manufacture cost price you always lose money

"Near" is not the same as "at", and in any case selling at cost or even losing money is not contra revenue.