Thread regarding Intel Corp. layoffs

We believe Intel has won roughly 25% share of the iPhone 7 away from Qualcomm, with an ASP of $5.00 at best, which translates to roughly $150.0 million in C16 revenue and $300.0 million in C17 revenue. iPhone 7 baseband win with negative margins… We believe Intel secured a design win for its baseband modem with roughly 25% share of the iPhone 7 modem, with an ASP of $5.00 at best. We would note this is the former Infineon business that Intel purchased in 2010 and Infineon was the original modem supplier of the iPhone, iPhone 3G, iPhone 3GS, and iPhone 4. We also believe Apple will build some buffer inventory as this is the first time it is using Intel in the iPhone, and as a result, we estimate the design win will translate to roughly $150.0 million in incremental revenue in C16 and $300.0 million in revenue in C17. While we believe Intel has a win with Apple, our analysis indicates it will contribute nothing to EPS at best due to negative gross margins. We believe Intel’s manufacturing cost is at least $10.00 per chip, given it is made on an older 28nm process at a foundry. We would note Qualcomm’s manufacturing cost for a similar chip is roughly $9.00 made at the same foundry on a more advanced process – 20nm. …