Report: Apple may have to keep Qualcomm around for 2018
A new report from Fast Company has surfaced claiming that Apple will continue to rely on Qualcomm this year, with a hopeful switch to intel by 2019. Intel began working with Apple within the last few years but Qualcomm received the lion's share of the business. That was it seems, until things heated up between the chipmaker and Apple. It is no secret that Apple has been pushing towards fully adopting Intel hardware, but wariness over supply appears to be keeping the entire move from taking place this year. The report shows that Apple is planning on having Intel supply 70 percent of the chips this year. The remaining 30 percent will fall to Qualcomm, with the possibility of providing even more if Intel fails to deliver. It is still possible that Intel will provide even more than the forecasted amount, but the report cites a source claiming it may in fact be lower.
why the delay?
Intel is building chips with a new process. Since they are just starting this process, confidence is not high that they can deliver the massive amount of hardware needed to keep up with the product launch. Although Apple may be eager to cut ties with Qualcomm, rationality seems to be winning for now. It is important to note that the original iPhone chipmaker was bought by Intel years ago, just as Apple Switched to Qualcomm (2011). Two cycles ago Apple rekindled the relationship and has slowly been phasing Qualcomm out. The report was later updated to show that Qualcomm dropped projected revenue from its business with Apple from its first-quarter earnings report. This makes sense, since so much rests on how many chips Intel successfully cranks out and there is an end in sight for the relationship altogether. This news comes on heels of news regarding business dealings between the chipmaker and ZTE as well.
source: Fast Company via 9to5Mac
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