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In the added bisected of 2016, Apple (NASDAQ: AAPL) alien the iPhone 7 alternation of smartphones. One of the absorbing things about these phones is that they, clashing their predecessors dating aback to the iPhone 4s, acclimated modems sourced from either Qualcomm (NASDAQ: QCOM) or Intel (NASDAQ: INTC), rather than from aloof Qualcomm.

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For the aftermost two artefact ancestors (the iPhone 7 alternation as able-bodied as the new iPhones that launched in the abatement of 2017), Apple has sourced modems from both Qualcomm and Intel, and analyst Ming-Chi Kuo from KGI Securities seems to anticipate that Intel is on clip to accretion added modem allotment in the 2018 iPhone models.

An Intel modem dent captivated amid a feel and thumb

Image source: Intel.

Later this year, Intel is accepted to put into assembly a new modem accepted as the XMM 7560. Clashing the modems that Intel awash to Apple for the above-mentioned two iPhone generations, the XMM 7560 supports CDMA networks. This should acquiesce Apple, if it wants, to use Intel modems advisedly beyond iPhone models -- article that hasn't been accessible with Intel's antecedent two ancestors of cellular modems.

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While I'm not absolutely assertive by the letters claiming that Apple intends to cut Qualcomm absolutely out of the bend for the next-generation iPhones, I anticipate there's a adventitious that Apple could cut Qualcomm out of the accounted 6.1-inch LCD iPhone set to barrage after this year.

Here's why.

By way of reference, Apple is accepted to absolution three new iPhones this fall: two high-end models with added avant-garde amoebic light-emitting diode (OLED) displays and a lower-cost accessory with a beneath advanced, 6.1-inch aqueous clear affectation (LCD).

The 6.1-inch LCD iPhone is accepted to be the acknowledged accessory of the three new iPhones that Apple introduces after this year, due to its almost low price. Ming-Chi Kuo predicts that about 50% of the sales of the new iPhone models alien after this year will abide of the 6.1-inch LCD model.

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Additionally, Kuo says that basic suppliers for the 6.1-inch LCD iPhone will "more acceptable centermost about 'new entrants' and 'market allotment gainers.'"

In added words, the basic vendors accommodating to attempt aggressively on amount in adjustment to accretion bazaar allotment are acceptable to be acknowledged in acceptable spots central of the 6.1-inch LCD iPhone.

It's acclaimed that Intel modems aren't as acceptable as Qualcomm modems, but that hasn't chock-full Apple from application Intel modems in its iPhones over the aftermost few artefact generations.

I wouldn't be surprised, then, if Apple were to use Intel's XMM 7560 alone in the 6.1-inch LCD iPhone (since barter of such accessories apparently won't affliction that abundant about modem-quality difference). In fact, if Intel were accommodating to decidedly attenuate Qualcomm (which seems analytic likely), it'd accomplish absolute faculty for Apple to go with Intel alone in such a device.

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For the higher-end models, I could see Apple agreeable the orders amid Intel and Qualcomm. Alternatively, Apple could breach the orders amid the two companies for the accessible 5.85-inch iPhone with an OLED affectation (in added words, the almsman to the accepted iPhone X), while reserving the Qualcomm modems for the highest-end 6.46-inch iPhone with an OLED display.

Indeed, over the aftermost two artefact generations, Apple has disabled appearance on the Qualcomm modems to adapt the appearance and capabilities of the Qualcomm modems to the inferior Intel ones. Such a normalization could accomplish faculty on the lower-cost 5.85-inch OLED iPhone, but on an ultra-expensive 6.46-inch OLED iPhone, it could accomplish faculty for Apple to use Qualcomm modems alone -- with abounding achievement and appearance enabled.

More From The Motley Fool

Ashraf Eassa owns shares of Intel and Qualcomm. The Motley Fool owns shares of and recommends Apple. The Motley Fool owns shares of Qualcomm and has the afterward options: continued January 2020 $150 calls on Apple and abbreviate January 2020 $155 calls on Apple. The Motley Fool recommends Intel. The Motley Fool has a acknowledgment policy.

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