Intel and Qualcomm bid for Apple's future iPhones but one at risk of losing out

Qualcomm remains a modem supplier for the next-generation iPhones to be released next month, but recent information claims Intel will take over in 2017. Predictions argue that it may be premature for Intel to declare victory as Qualcomm fights to remain as the sole supplier for Apple. Which company will secure the contract?

Qualcomm has partnered with Taiwan Semiconductor Manufacturing Company (TSMC) to supply models for this year's iPhones. The modems will be based on TSMC's 20-nanometre process, according to sources familiar with the matter (via DigiTimes). Whereas there have been predictions about Intel taking up Apple's modem orders in the future, the same sources argued that it is unlikely to happen in 2015 and 2016. It can be possible in 2017 since Apple will still be sourcing out additional suppliers.

Previously, Northland Securities analysts, in a note (via The Motley Fool), said that Intel is a candidate to become one of two stand-alone cellular modems supplier to Apple's iPhone 6s. Analysts also claimed that if this will push through then it can be good for Intel's mobile chip business. Apple, on other hand, may get better pricing deal given the competition. The downside is that Qualcomm will lose revenue.

Considering such, Intel should still not declare victory as Qualcomm remains in contract with Apple for the expected iPhone 6s and iPhone 6s Plus. As for the future, Intel's XMM 7360 may be a candidate for the 2016 iPhone as it will be based on the 28-nanometre foundry process. That is if Apple will prefer the first over Qualcomm's recently announced MDM9x45. Intel will have to come up with a way to take over the MDM9x45's technology advantage over 7360. The former is based on the 20-nanometre technology.

Apple has not released the final details of its iPhone 6s and iPhone 6s Plus devices yet. The company is expected to hold a press event this September 9 in line with the announcement.

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