In the wake of Apple's lengthy legal battle with iPhone LTE chip supplier Qualcomm, Apple is believed to be leaning more on Intel as a manufacturer for the iPhone's baseband chip component. The news comes in a report by DigiTimes, which states that Apple's increase of Intel-created wireless chips for iPhones could lead well into 2018, suggesting the so-called iPhone 7s, iPhone 7s Plus, and iPhone 8 have a higher chance of receiving Intel's chip than Qualcomm's.

Apple sourced both of the manufacturers for wireless chips in the iPhone 7 and iPhone 7 Plus in 2016, with a ratio of around 70 percent sourcing going to Qualcomm and 30 percent going to Intel. Now, Apple is believed to have given each supplier an equal 50 percent proportion of the wireless chip manufacturing for the rest of 2017, and that number could eventually increase to weigh in Intel's favor -- all because of Apple's legal fight with Qualcomm.

intel iphone LTE chips
Analysts watching the supply chain predict that Apple will eventually give Intel 70 percent of the production capacity in iPhones by 2018, because neither Apple nor Qualcomm are willing "to give in to make peace."

Apple's outsourcing proportion to Intel for the next-generation iPhone baseband chips has risen to about 50% for orders running through the end of 2017 due to the lawsuit between Qualcomm and Apple, which has grown fiercer recently.

Since both Qualcomm and Apple are unwilling to give in to make peace, some market watchers believe Apple is likely to shift even more baseband chip orders away from Qualcomm with Intel to supply over 70% of the baseband products for iPhones by 2018.

Apple and Qualcomm's feud began with a complaint filed by the FTC in January that centered around Qualcomm's anticompetitive patent licensing practices, which the FTC claimed it used to remain the dominant supplier of baseband chips for smartphones. Not long after, Apple filed a lawsuit against Qualcomm over the news of its practices, claiming Qualcomm charged unfair royalties for "technologies they have nothing to do with."

After a few quiet months, in April Qualcomm countersued Apple, so Apple decided to stop making royalty payments to its suppliers in relation to Qualcomm's baseband chip technology, igniting a new series of arguments between the companies. Because Qualcomm holds licensing deals with Apple's iPhone manufacturers, and not Apple itself, the move was suggested to hurt Qualcomm to the tune of $500 million, causing the company to adjust its third quarter guidance from $5.3 billion - $6.1 billion in revenue down to $4.8 billion - $5.6 billion.

Qualcomm eventually tried to get an import ban passed that would prevent iPhones from entering the United States, and then decided to file a lawsuit against Foxconn, Pegatron, Wistron, and Compal for "breaching their license agreements" by failing to pay royalties on the use of Qualcomm's technology in the assembly of Apple's devices. Last week, Qualcomm requested an injunction to force Apple's iPhone manufacturers to keep paying royalties during the legal battle.

Due to the ongoing nature of the feud between the two companies, it's expected that the case will continue well into 2017, leading to today's report that Qualcomm might see a greatly reduced presence in the manufacturing of the next-generation iPhones. Even with the bad blood between Apple and Qualcomm, insiders still call Apple's reliance on Intel "a friendship of convenience" more than any kind of long-term partnership, because Intel's chips are said to have "inferior performance" in comparison to Qualcomm's technology.

Related Forum: iPhone

Top Rated Comments

RamGuy Avatar
85 months ago
And.......Intel chip sucks!! :-(

Sounds like this is the NEW TSMC vs Samsung chip debate.
This is unfortunate. It's fairly common knowledge the Intel version of the iPhone 7 is significantly worse than the QUALCOMM version. I switched and signal strength and speed both went back up.

Sucks Apple has to go with the inferior supplier :-(
Are you serious? "Sucks" is a way too harsh a term to be used here. Sucks should mean that the Intel WWAN chips are faulty, causing various issues like drop-outs and whatnot. Having a chip that gives you slightly worse Throughput/RSRP does not mean it downright sucks. People really need to get their acts together. This is no need to blow everything out of proportions all the time.

If you seriously consider the difference between the Qualcomm MDM9645M and Intel XMM7360 to be of such significance that the Intel versions downright sucks you must hate the iPhone 6S as the Qualcomm MDM9635M in the iPhone 6S scored worse on the Throughput/RSRP ratings on pretty much all the tests compared to the Intel XMM7360..

What's even funnier is how the Intel XMM7360 actually beats the Qualcomm MDM9645M at Throughput/RSRP on lower signal levels. But who care about that? People care more about having 140mbps vs 110mbps in good coverage, compared to having 15mbps vs 25mbps in bad coverage.

What kind of applications do you use while roaming that makes you notice the difference between having 140mbps vs 110mbps over LTE with good signal strength?

I don't care. It's not like the networks are pushing the limits of what the chips can support. However I am curious on their CDMA abilities since Qualcomm owns a lot of patents on that chip technology.
Good to see that there is still at least a few members who don't jump onto the whine-train as soon as a article goes live on Macrumours.
Score: 16 Votes (Like | Disagree)
Sunny1990 Avatar
85 months ago
And.......Intel chip sucks!! :-(
---------------------------------------------------------------
"ugh!- Sounds like this is the NEW TSMC vs Samsung chip debate.
Score: 6 Votes (Like | Disagree)
Evelyn Harthbrooke Avatar
85 months ago
That's the issue here. With a weak data connection, the Qualcomm modem still works good.
So does the Intel modem, so...what's your point?
Score: 5 Votes (Like | Disagree)
Stridder44 Avatar
85 months ago
And.......Intel chip sucks!! :-(
---------------------------------------------------------------
"ugh!- Sounds like this is the NEW TSMC vs Samsung chip debate.
Comments like yours are why this forum needs the down-vote arrow back again.
Score: 5 Votes (Like | Disagree)
Crzyrio Avatar
85 months ago
Apple puts state of the art LTE Modems with capability of ridiculous speeds, people be like:
What is the point.
Those speeds are not even available.
I am going to go through my data faster now

Apple puts limits performance of chips so all iPhones are on same level but still crazy fast, people:
What the HELL Apple.
Why are you limiting my phone
I want what I paid for, not a inferior product.

:confused:
Score: 5 Votes (Like | Disagree)
samcan Avatar
85 months ago
This is unfortunate. It's fairly common knowledge the Intel version of the iPhone 7 is significantly worse than the Broadcom version. I switched and signal strength and speed both went back up.

Sucks Apple has to go with the inferior supplier :-(
Score: 4 Votes (Like | Disagree)

Popular Stories

iOS 17

iOS 17.2 Will Add These 12 New Features to Your iPhone

Friday December 1, 2023 12:19 pm PST by
iOS 17.2 has been in beta testing for over a month, and it should be released to all users in a few more weeks. The software update includes many new features and changes for iPhones, including the dozen that we have highlighted below. iOS 17.2 is expected to be released to the public in mid-December. To learn about even more features coming in the update, check out our full list. Journal ...
iOS 17

Apple Releases iOS 17.1.2 With Security Fixes

Thursday November 30, 2023 10:12 am PST by
Apple today released iOS 17.1.2 and iPadOS 17.1.2, small updates to the iOS 17 and iPadOS 17 operating systems that Apple introduced in September. iOS 17.1.2 and iPadOS 17.1.2 come a few weeks after the release of iOS 17.1.1, another bug fix update. iOS 17.1.2 and iPadOS 17.1.2 can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update....
iOS 17

28 New Things Your iPhone Can Do in December's iOS 17.2 Update

Friday December 1, 2023 2:57 am PST by
Apple made the first beta of iOS 17.2 available to developers in October. Since then we've seen three more betas, and with each iteration Apple continues to add more new features and changes, many of which users have been anticipating for quite a while. Below, we've listed 28 new things that are coming to your iPhone when the finalized version is publicly released this December. 1. Help...
apple card 1

Apple Ending Apple Card Partnership With Goldman Sachs

Tuesday November 28, 2023 3:09 pm PST by
Apple is ending its credit card partnership with Goldman Sachs, according to The Wall Street Journal. Apple plans to stop working with Goldman Sachs in the next 12 to 15 months, and it is not yet clear if Apple has established a new partnership for the Apple Card. Apple and Goldman Sachs will dissolve their entire consumer partnership, including the Apple Card and the Apple Savings account....
iOS 17

Everything New in iOS 17.2 Beta 4

Tuesday November 28, 2023 12:18 pm PST by
Apple is wrapping up development on iOS 17.2, with the update expected to come out in December. While we're getting to the end of the beta testing period, Apple is still tweaking features and adding new functionality. We've rounded up everything new in the fourth beta of iOS 17.2. Default Notification Sound Under Sounds & Haptics, there's a new "Default Alerts" section that allows you to ...
iPhone 16 Mock Header Updated 1

iPhone 16 to Include Action Button Across Entire Lineup

Thursday November 30, 2023 4:08 pm PST by
The release of the iPhone 15 Pro and Pro Max saw the introduction of an entirely new user-configurable button known as the Action button, and now, MacRumors has seen extensive evidence confirming Apple is planning to include the Action button on the entire iPhone 16 range. Designs and plans for the Action button date back to at least 2021, as the button was intended for release alongside hapt...
anker new xmas

Anker's Cyber Week Sale Enters Final Days With Up to 60% Off Sitewide

Friday December 1, 2023 12:05 pm PST by
Anker's Black Friday/Cyber Week event is entering its final days this weekend, and it's still offering up to 60 percent off sitewide. There are also a few "mystery boxes" that can include hundreds of dollars in savings, if you're willing to risk not knowing what you're buying ahead of time. All of these sales will end on December 3. Note: MacRumors is an affiliate partner with Anker. When you...
paramount plus logo

Apple and Paramount Considering Discounted TV+ Streaming Bundle

Friday December 1, 2023 4:40 am PST by
Apple and Paramount have discussed bundling their TV streaming services at a discount, according to a new report by The Wall Street Journal. The companies have talked about offering a combination of Paramount+ and Apple TV+ that would cost less than subscribing to both services separately, according to people familiar with the discussions. The discussions are in their early stages, and it is ...
General Apps Messages

Green Bubbles on iPhone to Gain These 7 New Features Next Year

Thursday November 30, 2023 9:00 am PST by
Earlier this month, Apple announced that it will finally support RCS in the Messages app on the iPhone starting later next year. This change will result in several improvements to the messaging experience between iPhones and Android devices. RCS will become the new default standard for messaging between iPhones and Android devices, but these conversations will still have green bubbles like...