Low-cost iPhone rumors: to be equipped with Qualcomm chip?

Analysts at Detwiler Fenton believe that a Qualcomm Snapdragon with integrated Bluetooth and WiFi module will be integrated in Apple’s inexpensive smartphone.

The collaboration with Qualcomm apparently shows Apple’s interest in maintaining overall profitability as well as offering many more useful features.

“It is likely that the work with QCOM is being driven by AAPL’s concern regarding maintaining gross margins as well as the need to differentiate the product by performance,” the research firm said. “AAPL 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.”

The analysts say that by using Snapdragon with integrated Bluetooth and Wi-Fi, Apple could merge all three discrete chips used in the current iPhone 5 into a single chip with significantly reduced costs.

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

According to their estimates, each phone using a chip of that description brings $10-$15 per phone for Qualcomm.

Source: Forbes