Intel Corp (INTC)

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CLSA says that Intel has managed to bag 30-40% of Apple iPhone 7 modem chip orders which could lead to a $1bn revenue opportunity

A Twitter profile by the name of “Notable Calls” has made a rather interesting post. The profile has quoted CLSA’s note to investors that, Intel Corporation (NASDAQ:INTC) has won a significant portion (30-40%) of Apple’s next-generation iPhone 7’s modem business. The news comes all the way from Asian supply chain checks.

Until recently, Apple has been seeking the help of Qualcomm, Inc. (NASDAQ:QCOM) for the chips in the phones. However, now it seems that Intel will also get to have a bite out of the Apple. According to iFixit, Apple has been installing Qualcomm’s MDM9635M LTE Cat. 6 Modem chips in its phones.

Back in November, CLSA said Intel had lost out on the iPhone 7 order due to lack of CDMA in the chipmaker’s modems. It also cited a weak PC market as a growth headwind for Intel. But now, it seems that Intel has responded well to the stagnating PC market and diversified its product line. These include producing powerful chips for data centers with a renewed focus on mobile.

Additionally, CLSA analyst Srini Pajjuri also downgraded Intel’s stock to Sell last November. Following the company’s analyst's day, it was found that flat growth in PC sales would affect Intel, but the chipmaker’s Intel PC unit sales went up 15%.

Notable Calls stated that Intel’s new partnership with Apple will result in a $1 billion revenue opportunity. On the other hand, in case Apple manufactures 80 million iPhones for the September quarter; it will mean around 25 million of those phones will come equipped with Intel’s new modem chips in it. In case Intel’s chips perform better than Qualcomm’s, the latter may be in some trouble with regards to future orders.

http://www.bidnessetc.com/64777-intel-corporation-bags-3040-of-iphone-7-modem-chip-order-clsa/