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Apple Watch 3 Reinforces Qualcomm’s ‘Modem Design Leadership,’ Says ABI

Though Apple remains locked in a bitter patent fight with Qualcomm at the International Trade Commission over iPhone baseband processor chips (see 1707120023), Apple is reinforcing Qualcomm’s “modem design leadership” in its new Apple Watch 3 product lineup, said ABI Research in a Wednesday teardown report. With cellular connectivity added to the Apple Watch lineup for the first time, Apple is using a Qualcomm modem in the Watch 3 to “fulfill this cellular obligation,” ABI said. Though the cellular version of the Watch 3 doesn't support CDMA networks, “which would seemingly make Intel the potential main supplier of the modem,” it’s the Watch 3's “smaller form factor” that makes Qualcomm “the obvious modem choice,” it said. Qualcomm CEO Steve Mollenkopf told an investor conference last month his company is trying to keep separate its roles as an Apple litigator and supplier (see 1709100004).