As early as 2016, a wireless giant Kualcomm (NASDAQ: KCOM) lost its status as the only source of mobile modems inside Apple& # 39; s (NASDAQ: AAPL) iPhones, when it's a big chip Intel (NASDAQ: INTC) has become the second source of the modem for the iPhone 7 series of devices.
Kualcomm has remained an iPhone modem supplier for next-generation iPhones. However, Kualcomm was designed from this year's iPhone, which enabled Intel's additional support for CDMA wireless standard – the standard that some operators still rely on – to its latest mobile modem known as the KSMM 7560.
In February, analyst Ming-Chi Kuo, at the time he reported that Intel would be the only modem supplier in the 2018 iPhones, showed – using 9to5Mac – that Kualcomm will eventually be able to read the modem supply chain for the iPhone.
here is 9to5Macsummary of Kuo's comments:
He now claims that Kualcomm will be excluded from the iPhone in 2018. However, KGI does not exclude that Kualcomm returns to the supply chain, perhaps as a concession to resolve patent disputes.
KGI says that there is a risk that Intel may not be ready for 5G networking, which is fast and Kualcomm, which may even compel Apple's hand.
Given the latest achievements, I think the odds that Kualcomm receives for the iPhone modem are not looking good soon. Here's why.
Intel's execution appears to be improving
Kualcomm is the market leader in terms of mobile modems, but Intel's execution seems to be improving. According to PC Magazinetesting, "the iPhone KSS – which runs Intel's modem KSMM 7560 – represents a tremendous step from the iPhone Ks when it comes to the speed of LTE data transfer, according to exclusive new data from Cellular Insights and Ookla Speedtest."
The site acknowledged that it "does not agree with the Kualcom Ks20 modem used in the system Samsung (NASDAQ: SSNLF) Galaki Note 9. "However, the performance difference looks much smaller than it was with previous generations of the Intel modem, signaling that Intel has improved the competitiveness of its modem technology with the KSMM 7560.
Regarding the 5G risk that Kuo pointed out in February, it's worth noting that Intel recently announced that its KSMM 8160 5G modem, a modem that Quick company reports will be able to use Apple's iPhone for 2020, which will be shipped in the second half of 2019 and will appear in devices during the first half of 2020.
Quick company also announced that Intel's KSMM 8060 5G chip – the chip Intel indicates – is intended to be used as a "development platform" and not as a part that will find its way into sending devices – leads to a "heat dissipation problem."
Keeping this in mind, Quick company said that "Apple's current issues with Intel are not serious enough to re-open Kualcomm talks about the delivery of the 5G modem to Apple."
Now, supplying companies like Apple is a marathon rather than a sprint, so Intel can not only get the KSMM 8160 and declare victory all the time. The company must retain modems that meet Apple's requirements, and do not miss the impression in terms of scheduling.
However, given that Intel's performance of the modem seems to be at a distance and taking into account the bitter legal dispute currently taking place between Apple and Kualcomm, the chances do not look good, as Kualcomm will soon get Apple Cellular Business Modem soon.
Ashraf Eassa owns Kualcomm shares. Motlei Fool owns actions and recommends Apple. Motlei Fool owns Kualcomm shares and has the following options: long January 2020, $ 150 calls to Apple and shorter in January 2020, $ 155 calls Apple. Motlei Fool has a publishing policy.