Infineon, Marvell and the iPhone

Apple is expected to announce the 3G iPhone this month.  Based on a reasonable set of assumptions, I have speculated that Infineon (IFX) will continue to be at the heart of the iPhone. Clues that ratify this scenario have also been uncovered in the recent months. Recently, however, there were two industry events that made many question this theory. Here, I will take a look at these events and what they signify for the iPhone.

Firstly, Sehat Sutardja, Marvell’s CEO, had this to say in the company’s F1Q09 conference call:

 

 During the first quarter we achieved what I believe to be a very important milestone as we began volume shipments of our HSDPA communication processor to a key smartphone customer. We expect a steady ramp to high volume production throughout the remainder of the year.

 

With the name of this ‘key smartphone customer’ not revealed, Apple and iPhone immediately got tagged to this remark. To me, the matter-of-fact statement appeared to reflect Marvell’s continuing relationship with RIMM.

The latest Blackberry Bold 9000 features Marvell’s Tavor platform. Tavor is a single-chip solution that combines a HSDPA baseband processor with a 624 MHz applications processor. The timelines of the Bold launch and Marvell’s shipment dates seem to corroborate as well. The RIMM angle, coupled with the difficulty in launching and testing a new platform with Marvell for the existing form-factor iPhone makes me believe that the Santa Clara-based company will not displace Infineon in Apple’s darling phone.

I will, however, not dismiss the possibility of Apple launching a second, smaller form-factor 3G phone with Marvell’s solution. Marvell’s Tavor may be ideal for a low-cost phone from Apple. The single chip will eliminate the need for a separate application processor. It will save space and power. Hence, it (or any single chip solution for that matter) will be a preferred solution a low-cost iPhone, if there is one. I also anticipate that Marvell will be able to bundle Tavor with its WiFi solution giving it a price advantage. So, in the eventuality of two iPhone models being launched, it is possible that both Infineon and Marvell have design wins at Apple.

This brings me to the other iPhone related news – the Infineon warning. The German company recently warned that it has received lower than anticipated orders for a project to supply HSDPA chips. Going with the premise that Infineon is indeed the 3G supplier for the iPhone, it is hard to tell if this warning pertains to Samsung, Apple or another customer altogether. If it is for Apple, then, contrary to what is being written elsewhere, I don’t think it signifies any major delay in the anticipated launch of the 3G iPhone.

This may, however, signal one of two things. The first possibility is that Apple may not market the 3G iPhone as widely as anticipated (at least initially.) The second possibility, which ties up with the Apple angle to the Marvell statements is product mix. Apple may be planning on a staggered, complementary launch of two 3G iPhone models. This, in turn, could be the reason behind the lower volumes shipped by Infineon and the perceived secrecy associated with Marvell’s ‘key smartphone customer.’

In summary, I think Infineon will be in the 3G iPhone. While I feel that Marvell’s statements pertain to RIMM, I also see the company as a very good candidate for a second iPhone design that may also launch soon.

 [All thoughts expressed here are those of the author's and do not necessarily reflect those of either Atheros Communications or TensorComm Inc.]

 Disclosure: None

 

Comments

[Wifiguy:]

Vijay, the Tavor platform has been around for awhile. You gotta think Apple was testing it long before the original iPhone came out. The Rimm Ceo said that the Blackberry Bold has been in production for 3 years. Isn't interesting that the iPhone and the Bold are being introduced at basically the same time? Rumors are saying that the Bold will not ship until July or August while the iPhone will ship in June? My thoughts are both Apple and Rimm will be using the Tavor platform, Intel wanted to sell this chipset at 40 dollars 2 years ago and Marvell is making these chipsets at Tsmc and have probably given both Apple and Rimm a deal they can't refuse to get a foothold in the market.
Check the link.
www.dvhardware.net/art...

2008 Jun 03 05:00 PM

[Zoltar:]

You're also forgetting the rumors / announcement? for Broadcom regarding GPS chip. Now I feel chalenged by the notion that any iPhone will have an array of chips when NVIDIA and Broadcom offer ASICs, system on a chip with all functions integrated including mobile TV, GPS, FM Radio, app processor, 3.5G/Wi-Fi/Bluetooth radio etc etc etc. All in a super low power chip!

I think you're sticking with Infineon because you're stubborn, that's all :)

A company of the class of Apple never depends on suppliers, it seeks independence of them and to make them its slaves if possible :)

Why would Apple stick with Infineon when they were late to the low power 3G chip market? In December/January (am I wrong?) Steve was talking about 3G being power hungry and in Feb 11 both Broadcom and NVIDIA were showing off prototypes of their wares at the Barcelona Mobile World Conference. I'd be furious if I was Stevie, here I am with no 3G iPhone, people clamoring for it, my stock is down to half its price, and these dudes are showing off prototypes like the APX2500 that is an amazing piece of the future that makes you wonder about the iPhone?!

2008 Jun 03 11:10 PM

[Vijay Nagar...:]

WiFiguy, Thanks for the Tavor link. I will be cautious about Marvell and Apple. I reiterate, I see Marvell a possibility only in a second iPhone design. Also, it is not a question of 'not being able to refuse' but also about platform stability, testing etc. All that takes time..

XXa, I think you are confusing between the application processor and baseband processor capabilities. And there is a difference between chip and chipset..Broadcom does not have all the features you mentioned in a single chip! No one does. I will still stick to Infineon for the reasons I have been stating all along. Maybe I am stubborn:) but I am yet to see a valid counter-argument against the Infineon chipset. I may be wrong though!

You should also remember that Apple will make design decisions if it makes economic sense only. The first version did not have 3G but was a wildly successful product despite the array of 3G devices it was up against. So, Steve will not necessarily go with the best chipset there. He would rather decide it based on the value for his money.

Vijay

2008 Jun 05 12:23 AM