A two-year legal conflict has ended when Apple reached a settlement with Qualcomm. The end of the royalties and patents dispute with the chipmaker company and the simultaneous withdrawal of Intel from the market means that the next line of iPhones will be powered by Quallcom 5G modems.
Qualcomm was the unequivocal winner of the day in San Diego on this Tuesday. The US telecommunications equipment company will not only receive an unclosed amount of payout Apple, but has signed a six-year patent licence deal and a supply agreement with at the same time. The settlement was followed by a 22% share raise on the same afternoon.
The feud between Apple and Qualcomm goes back to 2016 when Apple had accused the Qualcom with patent malpractices to keep their monopoly on phone modem chips. Quallcom fired back that it was Apple that was using their technology without paying for it.
Apple had started to use Intel chips in iPhones instead of Qualcomm products from 2016. Apple had stopped paying licence fees to Quallcom at first, then completely ended the use of Quallcom chips in iPhones by 2018. Intel Corp became the sole supplier of such equipment for Apple, which was a matter of concern for the smartphone maker.
It was this month when word reached the press that Intel might not be able to deliver the promised 5G modems to Apple in time. Intel announced its pulling out from the mobile equipment business hours after when the Apple-Qualcomm deal was made.
Sources familiar with the settlement told Nikke Asian Review that Apple will start the purchase of Qualcomm next year. Securing the supply of 5G technology means that the new line of iPhones will come with Qualcomm modem chips inside them.