Apple originally intended the Intel deal to keep Qualcomm from getting too big for its boots and charging it too much for its modems.  The only problem was that the Intel modems only worked on some networks and were not as fast. To fix this problem Apple throttled the Qualcomm modems so that all the iPhone 7s were uniformly bad.

Now, North Capital Markets’s industry analyst, Tom Sepenzis, has claimed Intel’s inability to catch up to Qualcomm is forcing Apple to rethink its partnership.

In a note to investors he wrote:

“There have been several reports over the past month that have compared the speeds associated with both the INTC and QCOM modems in their respective iPhone models, with INTC coming up short. While Apple will certainly keep a second source if possible, it isn’t going to do so for too long if it has to handicap half of its devices.”

He added: “This should give QCOM a path towards recapturing all of Apple over the next two years if Intel doesn’t find an answer.”

Intel is some way from creating a comparable unit that it can supply for next-generation iPhone handsets. Of course it was one of many rumours that is circulating about the iPhone 8.  These are to make up for the fact that the iPhone 7 is the Vista of iPhones and Apple does not want to give the impression that it has given up on smartphone inovation. However, the Intel deal was rather strange.