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Technology Stocks : Apple Inc.
AAPL 248.94+0.9%3:24 PM EST
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To: JakeStraw who wrote (190458)5/12/2016 4:25:46 PM
From: Art Bechhoefer1 Recommendation

Recommended By
david1951

   of 213182
 
If I had to identify one key problem in regard to the iPhone it would be a lack of a combined system on chip for the modem and processor. Currently Apple has a very good processor of their own design, using ARM architecture, but they have to rely on modems supplied by Qualcomm, whose modems exceed the performance of competing brands from Samsung, MediaTek, etc. Using two separate chips instead of a combined modem and processor costs more, uses more power, and takes up more space.

Many of the Android phones that compete most closely with the iPhone 6 and 6s and the iPhone SE use a combined modem and processor. That will give Android phones an edge in price over the iPhones. And price is a very important factor in determining what smartphone to buy for an acceptable level of performance.

Although there may be several factors that account for the current weakness in AAPL, I think the lack of a combined modem and processor rates high.

Art
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