Apple, in a move to diversify its supplier base, will reportedly split a contract for modem chips for its next iPhone between its existing supplier Qualcomm and Intel, which has struggled in the mobile market.

According to Bloomberg, Apple will switch to Intel’s modem chips for its iPhone shipments to AT&T as well as some other overseas markets. But Apple will continue to use Qualcomm chips for the iPhone versions going to China and Verizon Wireless in the US.

The order is Intel’s first major mobile chip win from Apple and a significant boost for the company’s mobile chip business, which has racked-up significant losses. In early May, following a major restructuring, it said it would drop its SoFIA integrated modem/processor packages – an important component in the battle for smartphone success. It has already been widely detailed that the company missed the smartphone boat to rivals Qualcomm and MediaTek.

Qualcomm reportedly will retain a major part of Apple’s business.

Qualcomm was anticipating that Apple would add another supplier, with CEO Steve Mollenkopf telling analysts on an earnings conference call in April that he was assuming that a major customer would switch to multiple suppliers, Bloomberg reported. Its other major modem chip customer is Samsung, which already uses multiple component providers for its handsets.

Adding a second supplier gives device makers more leverage in negotiating prices, but analysts have suggested that Qualcomm’s modems continue to outperform its rivals.