Analysts suggest Qualcomm could supply the processor for a low-end Apple iPhone

Fabless chipmaker Qualcomm could be the supplier of processors for a low-end Apple iPhone aimed at emerging markets, according to a leading research firm.

In a research note republished by Forbes, Detwiler Fenton anticipates Qualcomm is working on an ARM-based Snapdragon processor with integrated Bluetooth and Wi-Fi, combining the functions of three chips on Apple’s current iPhone 5 into a single chip in order to save costs.

“It is likely that the work with [Qualcomm] is being driven by AAPL’s concern regarding maintaining gross margins as well as the need to differentiate the product by performance,” Detwiler Fenton says in a research note.

“[Apple] would not want a value priced iPhone to offer the same kind of graphics and video support, processing power etc. that its premium priced device would, therefore a less powerful lower-end Snapdragon integrated solution would help segment the product.

“It’s a strategy that would appear to make sense. Should [Qualcomm] secure a Snapdragon design in a low-end iPhone it would obviously be a huge win as thus far its business with [Apple] has been limited to modem parts only.”

The news comes as Apple looks to switch away from using major rival Samsung as a supplier for its processors.

You can help us (and help yourself)

Small and medium businesses and startups have never needed credible, independent journalism and information more than now.

That’s our job at SmartCompany: to keep you informed with the news, interviews and analysis you need to manage your way through this unprecedented crisis.

Now, there’s a way you can help us keep doing this: by becoming a SmartCompany supporter.

Even a small contribution will help us to keep doing the journalism that keeps Australia’s entrepreneurs informed.



Notify of
Inline Feedbacks
View all comments