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One analyst wrote in a report that he believes Apple could suspend iPhone X production altogether in the second half this year after the firm rolls out newer models.

Kuo previously expected Intel to supply 70 percent of Apple's modems, with the remaining 30 percent coming from Qualcomm.

According to Taiwanese business group KGI Securities, Apple shared baseband chip orders for iPhone 7 with Qualcomm and Intel.

Apple and Qualcomm are now involved in a legal case in the United States over terms of licensing fees and patent infringements.


There is also a risk that Intel might not be ready for 5G networking as quickly as Qualcomm, which might also force Apple's hand. The metal body of the LCD model will mean it won't support wireless charging like the 2017 iPhone line and likely the 2018 OLED iPhones, but if it's a cheaper model it would make sense for certain premium features to be dropped.

Kuo, who has a sterling record of releasing spot-on forecasts on Apple products and services, recalled that when the company's 2017's flagship models came out, it was revealed that "Apple doesn't have enough resources available for development", to the company's embarrassment. Qualcomm chipset offers high performance when compared to Intel. However, as previous benchmarks have shown, iPhones with Qualcomm LTE chips have performed slightly better than their Intel-running counterparts. For instance, its newest XMM 7560 modem can support both GSM and CDMA. Qualcomm had also sought a ban on iPhone X in the US. Qualcomm even went so far as to file suit against Apple's device manufacturers (Foxconn, Pegatron, Wistron, and Compal Electronics). Apple typically likes to diversify its suppliers and could give back orders to Qualcomm in exchange for more favorable licensing terms.

But the December quarter overall figures do tell a different story, with the company suffering its first year-on-year decline for iPhone in the holiday season since the smartphone was launched a decade ago. In 2018, Apple is going to source all its chips exclusively from Intel for all its devices. This time, he claims that all the handsets launched this year will run Intel inside.


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