Tech giant Apple has announced that some versions of its next iPhone will use modems manufactured by Intel instead of the ones from Qualcomm. The move is part of Apple's strategy to diversify its suppliers.

There are unconfirmed reports that iPhones on the AT&T network, along with those released in some overseas markets, will use modem chips from Intel. However, iPhones on the Verizon network will continue to have modem chips manufactured by Qualcomm.

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Meanwhile, people with insider knowledge claim that iPhones sold in China will also sport Qualcomm chips.

Intel's mobile chip division has been struggling for quite some time now, and it has continued to report operating losses. The latest deal from Apple is the first major win for Intel in its efforts to somehow boost its relevance in the mobile market.

There are rumors that Apple will use the Intel XMM 7360 LTE modem which boasts of theoretical download speeds reaching 450Mbps and upload speeds of up to 100Mbps. As from Qualcomm, Apple is expected to pick the X12 modem which has theoretical download speeds of up to 600Mbps and upload speeds of around 150Mbps.

Many tech analysts claim that the latest diversification strategy from Apple will have a major impact on Qualcomm's dominance in baseband processors which are responsible for connecting smartphones to cellular and data networks. Although Qualcomm is losing a fraction of its current market to Intel, the Chinese chipmaker will still retain a major chunk of Apple's hardware business.

BTIG LLC analyst Walt Piecyk estimates that AT&T will sell about 22 million units of iPhones this year, and that number will grow to 23 million in 2017. On the other hand, Verizon is expected to sell around 21 million iPhone units this year and 22 million units next year. In 2015, Apple was able to sell more than 231 million iPhone units globally.

TagsIntel, Intel mobile, Intel mobile chips, Intel modem, apple, Apple iPhone, iPhone 7, Qualcomm, Qualcomm modem, Qualcomm chips