BMO Capital Markets’s Tim Long today updates his outlook on Apple’s (AAPL) iPhone business, while noting that his colleague Ambrish Srivastava’s research work suggests Intel (INTC) is indeed increasingly likely to take some share of baseband modem sales in the forthcoming model of iPhone, causing a loss of share for Qualcomm (QCOM).
This could have some immediate implications for Qualcomm’s earnings and could even force another restructuring, the analysts opine.
Long rates shares of Apple Outperform, and Srivastava rates shares of Qualcomm and Intel Market Perform.
You’ll recall that last week included plenty of discussion of the rising prospect of an Intel modem win at Apple.
The prospect Intel is a “second source” to Apple for the iPhone “is much more realistic” now, writes Long, and “we believe there is a high probability that the iPhone 7 will be the first device where we see the change.” Continue Reading at Barron's...