In terms of smartphone application processor, Intel has officially abandoned the market. However, in terms of mobile phone baseband processors (also known as MODEM or communications processors), Intel still has a certain strength, and is currently competing for the contract of Apple's mobile phone baseband processor. According to the latest news from foreign media, Apple’s new mobile phone sold by AT&T in the United States (called the iPhone 7 by the media) will use Intel’s baseband processor and receive news. On Friday, Intel’s share price rose and Qualcomm’s share price plummeted. In addition, analysts also lowered the rating of Qualcomm stock. The processor of the smart phone is divided into an application processor and a baseband processor, and the baseband processor is used for data communication with the mobile operator's base station, and is also an important component of the mobile phone chip market. In the early years, Intel acquired the related business of Infineon and has the research and development capabilities of the baseband processor. In addition, with the application processor market unsuccessful, Intel began to focus on the baseband processor. Apple's mobile phone used Intel's baseband several years ago. Intel hopes that this "old partner" can renew today. Help yourself. According to Bloomberg News on Friday, Intel's baseband processor will be used in the new iPhone sold by US mobile operator AT&T. However, Qualcomm's baseband processor will be used in another large operator, Verizon, and in the Chinese market. The news came out that Qualcomm's share price plummeted by 2%. It is reported that Wall Street analyst Mike Burton lowered Qualcomm's stock rating from "buy" to "hold". The analyst believes that Apple and Intel's long-standing cooperation rumors have caused serious problems for Qualcomm. The analyst said that Apple's purchase of Intel's baseband processor has a motive, that is, Intel as a "hammer", hit Qualcomm. It is well known that Apple is diversified in the supply of upstream parts or foundry manufacturing. This will not only avoid the supply bottleneck caused by a supplier, but also reduce the price of the supplier and reduce the procurement cost. For example, the display screens of many Apple devices come from Samsung Electronics, Japan Display, Sharp and many other companies. In terms of mobile phone OEM, Apple also allocated orders to Foxconn and Heshuo Technology. At the same time, Intel and Qualcomm as suppliers of baseband processors, Apple can also encourage the two companies to compete in terms of products and prices. Apple will not announce the number of baseband processors used by Intel to purchase a number of mobile phones. According to estimates by Wall Street analysts, Apple's procurement scale is about 30 million to 40 million, accounting for 30% of all mobile phone baseband chips, which means that Qualcomm is still the leading supplier. Qualcomm is the world's largest smartphone chip maker. Qualcomm's most important product is the integrated Opteron system chip, which is widely used by smartphone manufacturers around the world. However, Apple has the development capability of application processors and has not purchased Qualcomm. The Snapdragon chip, Apple only needs Qualcomm to provide a baseband processor. For Intel, Apple's mobile phone chip orders are no different from a major "life-saving" news. Not long ago, Intel confirmed that it will not continue to upgrade the mobile phone processor product line "Atom" in the future, which means that the company will completely withdraw from the smartphone application processor market. In the future, Intel will still compete for the tablet chip market, especially the emerging hybrid tablet (which can act as a laptop). Due to the loss of the mobile phone processor market, coupled with the fact that personal computers have become the sunset market, Intel has become a promising company, and its share price has fallen sharply. In April, Intel announced a massive layoff plan for 12,000 people, and will also carry out a streamlined briefing on the chip product line. In the future, the company will focus on data center chips, IoT chips and other fields, but these areas are still unable to shrink the revenue from the decline in personal computers. For the supply of baseband processors and order allocation, Apple, Qualcomm and Intel did not comment externally.
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