Intel May Receive iPhone Orders: Northland Capital Markets

15 Aug

U.S. investment firm Northland Capital Markets said in a recent report that Intel may receive half the orders for modems in the new iPhone, a deal that will likely generate up to US$1.25 billion in revenue for Intel.

The next-generation iPhone is expected to be released in September this year and will likely create high sales again. The orders from Apple may bring Intel between US$750 million and US$1.25 billion in revenue for the 2016 fiscal year.

But that might not be enough to cover the loss Intel incurred in the mobile business. Intel’s mobile division reported a loss of over US$4 billion last year.

After Intel combined its mobile and PC chip divisions and formed the Client Computing Group, it has become almost impossible for the industry to know the company’s revenue and margins from mobile chips.

From the previous earnings report, mobile chip business did not seem to contribute much to Intel’s sales. In the previous quarter, the division reported revenue of US$1.6 billion, down 38 percent from the same period last year.

Intel’s major rival, Qualcomm, is also struggling. According to its previous earnings report, its revenue dropped 14 percent when compared to the same period last year. Qualcomm has announced the plan to cut staff by 15 percent.

Tags: