Intel Corp.'s Modem Sales Surge, Thanks to Apple Inc.
On chip giant Intel's (NASDAQ: INTC) most recent earnings call, company management said its shipments of cellular modems -- critical components that allow smartphones and other devices to connect to cellular networks -- grew 37% year over year during its most recent quarter. Cellular modem revenue is included as part of the "Other" category within its client computing group (CCG) results.
The "Other" category includes not just cellular modems but other non-processor components such as Wi-Fi and Ethernet chips. This segment brought in just $728 million in revenue last quarter, a mere fraction of CCG's total $8.86 billion in sales during that time, but investors should welcome Intel's attempt to diversify its revenue with an increasingly broad range of products.
Some of Apple's new iPhones have Intel modems inside. Image source: Intel.
Source: Fool.com