Intel lost billions of dollars after it missed the mobile boom, but it looks like it could be getting some major help from Apple. The world’s largest chip maker has possibly won a deal for its chips to be in more than half of the upcoming iPhone 7 models, according to market research firm Cowen & Co.
Not a big win in revenue but in profits
On Monday in a note, Cowen analysts wrote that recent field checks suggest that Intel’s modern chips are going to be used in more than half of the new iPhones slated for release later this year. This 50% share is substantially higher than the 25% Cowen estimated last month when it first reported that the chip maker would be powering the new iPhones.
Apple’s deal is expected to bring an additional $1.5 billion in revenue for the chip making giant, estimates the research firm. Cowen points out that since Intel has the mobile chip development technology already in place, it will not cost a whole lot to supply the modem chips to the Cupertino-based iPhone maker. This means nearly half of the revenue, or $850 million, could go directly to operating profits.
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