Intel to get chip order from Apple in major mobile win

Apple Inc's next iPhone will use modems from Intel Corp, replacing Qualcomm Inc chips in some versions of the new handset, a move by the world's most-valuable public company to diversify its supplier base.

Apple has chosen Intel modem chips for the iPhone used on AT&T Inc's US network and some other versions of the smartphone for overseas markets, said people familiar with the matter. IPhones on Verizon Communications Inc's network will stick with parts from Qualcomm, which is the only provider of the main communications component of current versions of Apple's flagship product. Crucially for Qualcomm, iPhones sold in China will work on Qualcomm chips, said the people, who asked not to be identified because Apple hasn't made its plans public.

Representatives for all of the companies declined to comment. Orders from Apple represent the first major win for an Intel mobile chip program that had struggled for relevance and racked up operating losses. The shot in the arm for the world's largest chipmaker further dents the dominance of Qualcomm in baseband processors that connect phones to networks and convert radio signals into voice and data.