Photo above: Intel XMM 7360 LTE Advanced modem
By Yohai Schwiger, Techtime
CEVA from Herzliya, Israel, is expected to report meaningful incomes from future iPhones following Apple decision to switch suppliers and give orders to Intel instead of Qualcomm. A recent report from COWEN, indicates that with Qualcomm excluded entirely from the 2018 iPhone in lieu of CEVA-based Intel modems, CEVA is poised to increase both its unit share and royalies coming from Apple.
COWEN: “We believe it should drive a powerful mix shift beginning in late 3Q18 when the phone begins shipping. Management indicated that Intel will be using a new DSP core for the iPhone modems manufactured at Intel’s foundry, which we estimate could bring 30-40% initial ASP bump for CEVA – in addition to the 50% unit share increase. By our math, this could present a $10M+ incremental revenue opportunity over the next four quarters for CEVA.
CEVA is a leading licensor of signal processing platforms (DSP) and a primary player in artificial intelligence (AI) processors. The analysts Matthew Ramsay, Joshua Buchalter and Ethan Potasnick believe that 4.9G/5G basestation chip royalties represent the largest near-term incremental revenue opportunity for CEVA.
“We continue to see a $20M+ incremental evenue opportunity from just Nokia and ZTE by 2020. In fact, CEVA recently announced an agreement with a 3rd 5G basestation customer and remains in discussion with a fourth (likely Samsung and Ericsson since Huawei does its own DSPs).”