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Apple has teamed up with the biggest chip manufacturer Intel for the development of the new iOS Chip that will be incorporated in some handsets of iPhone 7. It must be noted that for iPhone chip Apple has always been dependent on the Qualcomm but according to the new deal, Intel's modem chips will be used in iPhones on AT&T Inc's US network and certain versions of the smartphone in overseas markets. The news about this deal had an impact on share market as well, which saw Qualcomm's shares falling down 1.7 percent, while Intel's stock was up 0.3 percent and Apple shares were down 0.5 percent.
This deal is a boost for Intel as the company has secured its first major mobile phone order, with Apple announcing some versions of its new iPhone will use modem chips from the Santa Clara-based tech company. Earlier, Intel CEO Brian Krzanich outlined how the company would move away from its traditional specialty of manufacturing chips to focus on the cloud.
Also Read: Intel Unveiled Most Powerful Desktop CPU At Computex 2016
Orders from Apple is a significant win for an Intel versatile chip program that had battled for smartphones and racked up working misfortunes. The jolt for the world's biggest chipmaker further scratches the predominance of Qualcomm in baseband processors that associate mobile phones to networks and convert radio signals into voice and data signals.
AT&T will offer an expected 22 million iPhones this year and 23 million in 2017, as indicated by Walt Piecyk, an analyst at BTIG. Verizon, which has a marginally less iPhone user base, will offer an expected 21 million iPhones in 2016 and 22 million one year from now, Piecyk estimates. Apple sold more than 231 million units in the financial year 2015. The following version of iPhone is due for discharge this fall, which is being called iPhone 7.
It's noteworthy that the Infineon Technologies had provided the modem in the first iPhone in 2007. Infineon's remote division was later obtained by Intel and Intel lost the agreement when Apple picked Qualcomm for resulting forms of the mobiles that offered high data rates. From that point, Intel's chip has neglected to appear in any handsets that have sold in critical numbers and the organization has less than 1 per cent5 share in the smartphone chip segment.
Picking Intel chip as part for critical aspects of the product that creates around 66 per cent of Apple's yearly income may speak to a calculated bet by the organization. Getting second-source suppliers is a long time settled practice by gadget makers hoping to ensure they're in a superior position to negotiate on price. However, analyst, for example, Stacy Rasgon at Sanford C Bernstein have said that Qualcomm's modems stay in front of Intel's offerings in execution when measured by the amount of information they can get from the network into the smartphone. Rasgon has estimated that Qualcomm gets about $15 per iPhone from Apple or about $3.47 billion in Apple's fiscal 2015.
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