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Electrical machines with distributed concentrated windings are challenging the selection of the soft magnetic materials due to stator design and power conversion efficiency. A shorter magnetization path and relatively high magnetization frequency is beneficial for low-permeability soft magnetic materials with low power losses in the core. In this paper, a three-phase machine with laminated and iron powder cores is analyzed with focus on a modular winding design, the torque capability, and the stator energy conversion efficiency. Different iron powder cores are compared to a laminated core using 2-D finite element analysis (FEA). The three-phase machine torque is compared among a conventional distributed concentrated winding, an axially distributed wave-winding, and a number of circumferentially distributed wave-winding segments. According to 3-D FEA, the conventional coils are preferred if the permeability of the core is low.