Down to the ground in the smartphone application processor, Intel, has officially abandoned market. However, in the mobile phone baseband processor (also known as the MODEM or communication processor), Intel still has a certain strength, is currently competing for apple mobile phone baseband processor of the contract.

AT&T in the United States, according to foreign media's latest sales of apple's new mobile phone (by the media called the iPhone 7), will use Intel baseband processor, the messages are received, on Friday, Intel shares rose, qualcomm shares, analysts also reduced the stock rating.

Smartphone processors are divided into application processor and baseband processor, baseband processor used in base station and mobile carriers for data communication, is also an important part of mobile phone chip market. At an early age, Intel have buy infineon company related business, research and development ability with the baseband processor.

IPhone7 baseband chips on the or with Intel China edition with qualcomm

Nowhere, in addition, with the application processor market Intel started to focus on the baseband processor, which apple mobile phone used Intel baseband several years ago, Intel hopes the "old partner" can cultivate yourself again today.

Mobile operators in the United States, according to bloomberg reported on Friday, AT&T iPhone sales, will use Intel baseband processor. But in another large Verizon and Chinese market selling mobile phone, will adopt the qualcomm baseband processor.

News, qualcomm shares plunged 2%. It is reported, Wall Street analyst Mike Burton will qualcomm's stock rating from "buy" to "hold", the analysts say apple and Intel for a long time cooperation, have caused serious problems for qualcomm.

The analyst said that the apple procurement Intel baseband processor has a motive, is to Intel as "the hammer", beating the qualcomm.

Is known to all, apple in the upstream parts supply or contract manufacturing, mostly to diversify. This can not only avoid supply bottlenecks caused by a supplier, also can to bargain, suppliers reduce the purchasing cost.

Many display screen equipment, such as apple from samsung electronics, Japan's display, sharp and other companies, and in terms of cell phone contract, apple also gave foxconn and order allocation and pegatron technology.

At the same time to Intel and qualcomm as suppliers of baseband processor, apple can also encourage the two companies to compete in terms of product and price.

Apple does not announce from Intel purchasing how much mobile phone use baseband processor. According to Wall Street analysts estimate that apple's purchase size is about 30 million to 30 million, the proportion accounted for thirty percent of total mobile phone baseband chip, this means that qualcomm is still the dominant supplier.

Qualcomm is the world's largest smartphone chip manufacturers, is the most important product qualcomm Xiao dragon system integration properties of chip, was widely used smartphone manufacturers all over the world, but the company have the ability to develop the application processor and did not purchase qualcomm Xiao godson, apple need only qualcomm baseband processor.

Orders for Intel, apple mobile phone chips would be tantamount to a major "help!" message. Not long ago, Intel will not continue to confirm the future of mobile phone processor product line "atom" upgrade, which means that the company will be completely out of smart phone application processor market.

In the future, Intel will still compete for the tablet chip market, especially the emerging hybrid tablet (can serve as a laptop).

Suffered a loss due to the mobile phone processor market, coupled with the personal computer market has become the sunset, Intel as a company future confusion, stock prices have dropped sharply.

In April, Intel announced the 12000 large-scale layoffs, will also to reduce the chip product line. The future the company will mainly focus on data center, iot chip, etc, but these areas are still unable to densely shrinking revenue decline in personal computer.

For the supply of the baseband processor and order allocation, apple Intel, qualcomm, three companies did not comment.