Intel gunning to be major LTE modem chip supplier for Apple's iPhone 7

Intel wants a piece of the mobile phone market and everything starts with Apple. According to recent information, the company devoted more than 1,000 people to work on the next iPhone chip: the 7360 LTE modem chip. Analysts believe that Intel is right to want to become Apple's next major supplier as the Cupertino-based giant holds the key to the company's billion-dollar business.

Venture Beat cites sources familiar to the matter hinting at an army of people working on the highly praised LTE modem chip. Should things push through, then the company may become Apple's supplier for both the fabrication and the modem. Furthermore, sources said that Intel is devoting a lot of its resources to get a shot at a contract in 2016 -- most likely for the iPhone 7.

Intel CEO Brian Krzanich did claim in the company's last earnings call that it plans to ship the 7360 modem chips by the end of the year. He also said that new products should crop up next year running on it. Intel devoted as much manpower to the matter because Apple's account could prove to be crucial to the company’s future in the mobile market. Other reasons include the project complexity and Apple's demanding nature because of the iPhone.

Several analysts also support Apple's role in changing Intel's game. The billion-dollar giant has been missing on the mobile market that it lost more than US$4 billion (AU$ 2.91 billion) on it alone. Intel's chairman Andy Bryant acknowledged this, saying, "This is the price you pay to get back in and we will get back in." Apple is Intel's ticket to inside.

"If true, this would be a huge deal on two vectors," Patrick Moorhead, president of analyst firm Moor Insights and Strategy, told Business Insider.

"First, it would be the first time in many generations that Intel supplied the modem of the iPhone as Infineon (now Intel) did in the past. It would also signal the first time Intel would have taken on a high-volume fab customer. Intel has lower volume partners like Altera, but nothing like the volume an Apple SOC and modem would create." A bigger mobile business is also a possible way for Intel to offset losses from the shrinking PC market.

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