This week, Venture Beat, citing knowledgeable sources, indicated that Intel’s new 7360 LTE wireless modem chip will likely be some part of the new Apple iPhones in 2016. The commentary goes on to indicate that Intel’s inclusion as an iPhone supplier: “is as much about “second-sourcing’ as it is about the quality of the 7360 chip.” The report cautions that it remains unclear exactly which iPhone SKUs will contain the Intel sourced chip.
As Supply Chain Matters has previously echoed, Apple has active strategies addressing strategic and tactical supply risk and segmentation needs. This includes areas related to key components such as processor chips, displays, along with contract manufacturing needs. For the supply of modem chips for the iPhone, Qualcomm has far been the dominant supplier.
Intel arrived late to the mobile phone market and has since initiated earnest product development and other efforts directed at gaining traction. Venture Beat notes that Intel’s modem chip is highly regarded for being well-built, power efficient as well as fast. Further noted is that Intel acquired the former Infineon’s communications chip business in 2010 and since turned it into a seat of research and development for Intel’s next generation of LTE chips. Interesting enough and according to Venture Beat, Infineon once produced the 3G modem chips for iPhones at the Munich facility, but Apple quickly stopped sourcing the chips from Infineon after Intel bought the company.
Neither Intel nor Apple chose to comment to Venture Beat on their story.
We have often called attention to the risk, reward and peril aspects for being an Apple supplier. Even a high tech provider the size and stature of an Intel is not immune to procurement influence and supplier criteria factors that Apple can garner.