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2018 iPhones Expected to Use Intel Modems Exclusively

Qualcomm's legal battles with Apple mean the company's modems probably won't be used in new iPhone models this year.

Matthew Humphries Icon By Matthew Humphries February 5, 2018 8:45AM EST

The European Commission fined Qualcomm $1.2 billion last month after it found the company had paid off Apple to use its chips exclusively between 2011 and 2016. Now, in a complete reversal of fortunes, analysts believe we won't see any Qualcomm modems in this year's iPhone models.

As MacRumors reports, KGI Securities analyst Ming-Choo Kuo has revised his stance on the use of Qualcomm modems in 2018 iPhones. Initially he expected about 30 percent of modems to be provided by Qualcomm and the rest sourced from Intel. Now Kuo believes Intel will supply all the modems Apple requires, pushing Qualcomm out completely.

There seems to be two key reasons for a shift to Intel as an exclusive supply partner this year. The first is Qualcomm's ongoing legal action against Apple, which accuses the company of failing to protect Qualcomm's trade secrets as well as several allegations regarding modem performance, meddling in agreements with manufacturers, and breached agreements between the two companies. Qualcomm even went so far as to file suit against Apple's device manufacturers (Foxconn, Pegatron, Wistron, and Compal Electronics). With such a legal battle in full swing, you can understand why Apple would prefer not to be a customer.

The second reason is the fact Intel now has a modem Apple can use across all US networks. The Intel XMM 7560 modem includes support for GSM and CDMA, which allows the same modem chip to be used for iPhones on AT&T, Verizon, T-Mobile, and Sprint.

In the short term, Kuo believes it makes sense for Apple to choose Intel and therefore put extra pressure on Qualcomm to look again at its legal action against them. Longer term, however, he doesn't believe Intel will remain an exclusive supplier. It may be Apple finds another company to provide some of those modems beyond 2018, or Qualcomm could return as a supplier depending on its actions.

In terms of anyone planning to purchase a new iPhone model in 2018, it makes zero difference which modem is inside as long as it works.

https://www.pcmag.com/news/359008/2018-iphones-expected-to-use-intel-modems-exclusively