Intel Corp (INTC)

[Unkwn]

This is true. It begs the question, for me, why did Apple add the Intel modem to the mix? Sure, it moves from a "single source" (so to speak) but the Intel and Qualcomm modems aren't compatible. Further, from what I have read, the Qualcomm modem performs better than the Intel modem in non-CDMA use.

So Qualcomm performs better. Qualcomm covers all carriers. Intel is lower performing and doesn't support CDMA. Is Intel giving these modems away in an offer Apple couldn't refuse? It further complicates Apples BOM and supply chain management and creates additional SKU's to manage so that would have to be factored into the cost.

You guys think too US centric. The iPhone is sold all over the world and this strange CDMA issue is a US-only problem. It may also be related to higher royalty costs for Apple.

In addition, in order to put Qualcomm into serious pricing negotiations, Apple must credibly consider other alternatives. They can only do this by really buying another source. In addition, Intel likely made a low offer since there is really nobody else who buys their modem.

It may also be part of a larger deal where Intel will offer its modem as IP for integration into Apple's SoC and fabbing that on Intel's fabs. This could be a very interesting deal for Apple and Intel.