Must Read Rumors

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Prince Harry calls Duchess Kate the ‘big sister he never had’
Duchess Kate’s next engagement scheduled at Victoria and Albert Museum
Duchess Kate isn’t pregnant with baby no.3, despite report
Meghan Markle avoids Prince Harry questions at ATX panel
Kate Middleton and Prince William to embark on royal tour of Poland and Germany

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

by Nicole
January 27, 2013 at 11:57 am

Apple is reportedly working on a new iPhone model which, according to rumors, might be a cheaper model and could be equipped with Qualcomm Snapdragon processor.

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

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