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AP
The report says Intel may capture half of all modem chips powering the upcoming iPhones, which could amount to as much $1.25 billion in additional revenue. It writes:
"Apple has been evaluating Intel's model for a while. We now believe that Intel will capture roughly 50% of Apple's modem business in the upcoming iPhones due to launch September 9th. Further, assuming a 50% share of modem business in the new iPhones we estimate that this win could represent $750M to $1.25B in revenue for Intel in CY16. This is a marque win for Intel and would go a long way to reducing the mobile business losses."
A little over $1 billion in additional revenue for the whole year isn't big enough to move the needle at Intel, a $140 billion chipmaker that made over $13 billion in sales last quarter alone.
But Intel has been struggling in the mobile business for years, and signing up Apple as a major customer would mean a lot to them. Intel's been looking for ways to get back in the mobile game for a while, as Intel Chairman $4, "We will not continue to accept a business with multi-billion dollar losses. But this is the price you pay to get back in and we will get back in."
Perhaps in a way to hide its loss in its mobile business, Intel $4 into a single unit called the Client Computing Group this year. Last quarter, the Client Computing Group made about $1.6 billion, down roughly 38% from the same period of last year.
Apple has used Qualcomm's modem for years, $4, who reported in March that Apple and Qualcomm have an "uneasy relationship" now. Qualcomm saw its revenue drop 14% last quarter from the previous year, and has announced plans to cut 15% of its workforce.
Intel and Apple were not immediately available for comment on this story.