Apple chooses Intel as second supplier of iPhone modems

According to Bloomberg news agency sources, Apple has chosen Intel when it comes to supplying modems for future iPhone models such as the iPhone 7. This would mean that Apple would move away from the current Qualcomm modems for certain models.

Apple plans to use the Intel modems in devices for the US AT&T network and for other versions of the iPhone in markets outside the US, the sources tell Bloomberg. However, the Cupertino company would continue to use Qualcomm modems in iPhones on Verizon’s network and in ones intended for the Chinese market.

Expanding to multiple suppliers would allow Apple to negotiate more sharply on prices, Bloomberg writes. Analysts believe Qualcomm modems outperform Intel’s modems.

In April, Qualcomm CEO Steve Mollenkopf stated that “a major customer is placing orders with a competitor,” probably referring to modems for the iPhone 7.