Chipset giant Qualcomm has confirmed that Apple will be completely moving away from its modems to Intel as part of its recent earnings call report. According to the company, Apple will only use Intel modems “in its next iPhone release” which means that the 2018 iPhones will only come with Intel modem. This move is not surprising as both the companies are engaged in a legal battle with each other and have not shared the best of working relationships in the recent past.
However, the report by CNBC reveals that Apple will make the complete switch this year in comparison to previous reports which added that Apple was looking to make the switch next year with the iPhones that it would launch in 2019. According to the report, the company clarified that it will continue to provide the modems for its older smartphones that are currently available on the market. George Davis, the Chief Financial Officer for Qualcomm added that the reason for better than expected earnings is because of “strong demand” from China-based smartphone makers and “lower demand” from smartphone maker Apple.
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Davis went on to issue a statement as part of the report adding, “We believe Apple intends to solely use our competitors’ modems rather than our modems in its next iPhone release.” Cristiano Amon, the President of Qualcomm announced that the company is not expecting to be a supplier for “Apple’s next product launch” as part of the report. According to a report by 9to5Mac, on being asked if Qualcomm and Apple would never do business with each other again, Amon responded by saying that “this is a very dynamic industry” and Qualcomm would working with Apple as a supplier “if the opportunity presents itself”.
This report comes weeks after it was reported that Apple is dumping Intel as a component supplier for future iPhone models that the company plans to launch in 2020. Instead, the company may move to its rival Mediatek for 5G modems.