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Has Intel hit a jackpot with Apple deal?

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CIOL Has Intel hit a jackpot with Apple deal?

Intel may have lost on the mobile boom, but that isn’t stopping the chipmaker to reach the millions of smartphone users. According to market research firm Cowen & Co. Intel powers more than half of all upcoming iPhone 7 devices.

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Last month Intel would be powering the new iPhones, and Cowen estimated the chipmaker to have about 25 percent share. But field checks suggest that its modem chips will power more than half of the new iPhones, slated for release later this year.

CIOL Has Intel hit a jackpot with Apple deal?

The research firm estimates the Apple deal to bring in an additional $1.5 billion in revenue for Intel. Moreover, Intel’s supply cost wouldn’t be much since it already has the mobile chip development technology in place. This implies that nearly half of the revenue or about $850 million could go straight to operating profits. The company generated over $55 billion last year.

Intel’s technology advancement has always given it an edge over competitors. Intel CEO Brian Krzanich recently mentioned that 5G and connectivity are the main pillars of Intel's future business, meaning it could be looking for additional deals to follow after the iPhone partnership.

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