Intel is known to produce processors, but the company has made an unsuspecting turn when they confirmed that they will tie up with Apple with their upcoming iPhone.
Apple is known to produce their own processors and Intel has no business in that department, The Motley Fool noted.
However, the Cupertino giant taps the known processor maker to produce the phablet's modem which is due for launch on September 9, the report added.
The partnership, however, is not 100 percent but a good 50 percent, FOX Business points out. The other half of the deal was handed out to Qualcomm, the business website added.
Intel's deal with Apple will be a big help for the company's ailing finances since it might generate an income of between $750 million to $1.25 billion. Although the deal will not be a game changer for the company, still the revenue will boost the Intel's bank account, Phone Arena cited.
The modem that Intel will be providing is called XMM 7260 and will approximately fitted on half of the upcoming iPhone 6s. Additionally, the deal can be a long-term partnership with Apple if Intel will deliver the XMM 7260 expectations.
In relation to the deal, according to the experts, the dual sourcing that Apple made with Qualcomm and Intel will benefit the company as it can command the price of its product in compared to just relying on one supplier.
The two outsourced company will try to outshine and outbid the other in order to get the 100 percent share of the pie and with that in hand, Apple can always choose the company that will offer a cheaper product without compromising its quality.
Intel might have strike well on this deal but they have to keep in mind that Qualcomm has been partners with Apple with their processors. There is a big possiblity that Qualcomm will close the deal with Apple if their modem department can prove its worth.
Nonetheless, the move that Apple did with their modem benefits the three of them. Intel was given a chance to improve their finances while Qualcomm has closed another deal with the Apple with whom they have been working with for a couple of years now.
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