The stand-alone modem opportunity

http://www.fool.com/investing/2016/08/30/how-intel-corporation-can-win-in-the-mobile-market.aspx

Quote:

"When the tear-downs for Apple's upcoming iPhone 7 come in, many expect that Intel will supply modems for some of the models. As far as smartphones go, Apple is really the only company that still relies on stand-alone modems rather than on modems integrated into the same piece of silicon as the applications processor.

As long as Apple continues to use such stand-alone modems, and as long as Intel builds competitive modems for this market, the iPhone could represent a nice opportunity for the chipmaker to try to profit from the mobile market.

That said, this is the most "fragile" of the mobile opportunities in front of Intel. If Apple ever builds up a competent modem team and decides to integrate the modem into its applications processors, then Intel's iPhone-related revenue will go to zero within a couple of product generations."

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Intel failed on SOC front. It failed to gain other customers for the modem besoides Aapl.

It hoped that more oem's will jump in once they hear that Intel is in Aapl, but they said no, thanks, we need an SOC - and that SOC does not exist. Samsung has it's own SOC. Mediatek has it's own SOC.

The chance that Aapl will go for an SOC is yet low, but the risk that A10 will replace X86 in iBook line is high. All in all, the chance to win some decent market share in this ecosystem is maybe 1%. And even assuming 20% market share (all iphones) -> profits ? no way. Silicon surface is 80mm², almost as high as i7. Margin on modem: 0-5% . Margin on i7: 50%. Draw your own conclusions here ...

Just remember the Intel modem is made at TSMC and after their profit cut I highly doubt much profit their for Intel after Apple squeezed a desperate BK,, LOL

This assumes Intel can keep up with Qualcomm.

Unlikely as protocol complexity grows with 5G.

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The stand-alone modem opportunity

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