Sunday, 18 August, 2019

Apple paid USD 6bn to settle Qualcomm dispute

Apple signed a multi-year chipset supply agreement with Qualcomm SUPPLIEDApple signed a multi-year chipset supply agreement with Qualcomm
Emmett Howard | 22 April, 2019, 23:02

Though the two companies didn't announce the terms of the deal, it clearly has lot to do with Apple's 5G iPhone. Apple has planned to use Intel chips, but the chip maker was having issue meeting development deadlines.

On Wednesday, the 17th of April 2019, Qualcomm Inc., the Chipmaker headquartered in San Diego, added another $30 billion of market valuation after posting a 23 percent rise on yesterday (April 16th), after the California-based semiconductor and telecommunication equipment maker had settled its six-year long patent dispute with Apple Inc.

As Apple was already scheduled to debut 5G-capable iPhones at least a year behind its smartphone competitors, the Cupertino firm couldn't afford any more delays.

While no specifics on the agreement were offered, UBS analyst Timothy Arcuri says there's a high chance Qualcomm will make a great deal of money thanks to this settlement, as he estimates that Apple paid between $5 billion to $6 billion to have all litigation dropped.

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Chris is a Senior Editor at Mactrast.

Qualcomm Inc.'s fortune seemed to be feathered up, as Apple's sole iPhone chip supplier for past few years, Intel Corp., had chose to evade its modem chips business following Apple's settlement with Qualcomm Inc. In a statement emailed to Fast Company, Intel wrote, "As we said in November 2018, Intel plans to support customer device launches in 2020 with its XMM 8160 5G multimode modem".

The company is scheduled to report its latest quarterly earnings on May 1 and more details of Apple-Qualcomm deal might become available in the earnings call on the same day, according to Qualcomm. But Intel needs the revenue to justify the expense of building 10nm and 7nm fabrication platforms in order to keep up with TSMC. The Intel 7560 modem chips used on the 2018 iPhone models were manufactured using the 14nm process. But this can also backfire as far as Intel is concerned. Meanwhile, rumors that Apple is designing its own 5G modem chips are apparently true. A self-designed 5G modem chip for the iPhone would probably not be found on the device until 2021 at the earliest.

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