Reports say that Apple and Intel have a deal to fit the 2016 iPhone 7 with 7360 LTE modem chips. With more than a thousand employees working on the chip, the iPhone 7 could have Intel inside when it goes official, and if the deal pulls through, Apple will possibly switch over from Qualcomm to Intel for modem chips as well as a new Apple system on a chip.



Intel is pushing for a contract to supply chips for at least some of the 2016 iPhone units, essentially attempting to grab a portion of the market from Qualcomm. With the number of engineers working on the chip, Intel shows Apple just how committed it is to make this work out for both parties.

Currently, iPhone 6 and iPhone 6s units have Qualcomm LTE modem chips under their hood. By the end of 2015, Intel hopes to roll out its 7360 LTE modem chips in an attempt to win Apple's account by all means. However, rumors say that Apple could be planning on dual-sourcing the modems, dividing Intel and Qualcomm, in which the Latin and Asia markets will be getting the former's chips.

Intel manufactures its LTE modem chips in Munich, Germany, where the modem maker Infineon was located before Intel acquired it in 2011. Infineon was Apple's former supplier of 3G modems, but the deal between the two companies had a falling-out when the modem maker was sold to Intel.

"One of our sources said Apple engineers have been making trips to Munich, Germany, to work with Intel engineers to optimize the 7360 chip for Apple's phone," VentureBeat reports.

Plus, it seems that Apple wants to improve its own chip design team, as the Cupertino firm hired some engineers from the people behind the Intel LTE chip. The engineers are Bernd Adler, Carsten Janus Pedersen, Jing'en Chen, Christian Mucke and Matthias Sauer.

We won't likely see the Intel Inside sticker on an Apple device, but we might start using Intel technology on iPhones. It seems that Intel intends to be the pivotal maker and supplier of efficient chips for a range of devices, from low-cost gadgets to high-end flagships.

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