Intel Corp (INTC)

[ibc]

Intel’s Gunning for iPhone 7, But Stick with Qualcomm, Says Bernstein
http://blogs.barrons.com/techtraderdaily/2016/03/07/intels-gunning-for-iphone-7-but-stick-with-qualcomm-says-bernstein/

As to what we think about the reports in question? Well, we do believe that Intel appears to be gunning for the socket, and the general idea that AAPL might want to second-source QCOM at some point seems plausible. However, for a variety of reasons Intel capturing 30-40% of AAPL’s volume at this stage in the game seems extremely optimistic to us –to wit, Intel’s offerings appear under-specced, they don’t have CDMA, they are manufactured on a worse process node (raising the spectre of battery life), Intel’s forward roadmap appears much worse that Qualcomm’s, and Intel’s track record on mobile execution remains extremely spotty. And, such a large potential share loss appears inconsistent with Qualcomm’s commentary on chipset margin trajectory (so we conclude that at least Qualcomm themselves do not foresee such a large loss forthcoming).