Apple had no choice but to settle with Qualcomm – Intel exits 5G modem business

17 April 2019
Just hours after Apple and Qualcomm announce they are dropping the legal feud, we find out why.

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Whackcar, 17 Apr 2019If you look at Apple products, you'll notice that practical... moreNothing, because it would be more expensive to make themselfs. But they design major components themselfs as soc. Still Apple is most profitable company in a world I am,sure they dont care if they make anything as,long as,profits are insane

    "Intel for the rescue" Qualcomm passes regards to Intel :)

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      • Bewildered
      • 3Jn
      • 19 Apr 2019

      OSasmatteroffact, 17 Apr 2019I wonder why dont they jut make their own 5G modem, they co... moreJust to marry up a couple of points
      First 5G (Usain Bolt) is already up an running so playing catch up

      These court cases lasts months if not years. If Apple lost it would have had to appeal more time ( would you bet against Usain in a 400 metre race with a 100 metre start even if up against a relay)

      I understand that Qualcomm wanted $7.5 per iPhone, Apple wanted to pay $1.5 per iPhone (This is the 4G modem price)

      Even if Apple designed its own modem 4G or 5G Apple would still have to pay Qualcomm $X as Qualcomm owns Patents that Apple would have to install in its own modem

      There is NO $7.50 saving per iPhone if it builds it itself

      In related article Samsung stated it wouldn't sell 5G modem to Apple

      Intel despite Apple sending by email the confidential technical blueprint that would enable Intel or other modem manufacturer to build one

      Qualcomm has already won court cases as Intel supplied modems that Apple used, utilized Qualcomm patented technology.
      Apple in order to sell further units of this iPhone had to supply iPhones which had Qualcomm modems

      This article is about Intel no longer making 5G modem, this is simply economics, Intel has to pay Qualcomm a licence fee for using Qualcomm patented technology or be sued and lose

      Apple pay Intel say $3.75 say (50%) per modem, Intel will have manufacturing cost this includes the licensing fee that it pays to Qualcomm

      Intel will not receive $7.50 per modem as Apple may as well stay with Qualcomm
      The only way Apple saves is if its less than $1.50

      Patented technology means any and every phone maker pays a license fee (in some cases cross licencing arrangement fee) these fees add to the unit price.

      Apple uses Foxconn to make the physical iPhones as cheaper than in the U.S.A.
      Patent are unavoidable and valuable

      Apple 5G iphone are scheduled for 2020 provided it gets a supply of 5G modem

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        • Anonymous
        • Ix1
        • 18 Apr 2019

        Anonymous, 18 Apr 2019Apart from the fact that they don't make their own GPU, the... moreAcquisition and subsequent modification of IP isn't uncommon in the technology industry. Look up the origins of Qualcomm's Adreno GPUs -- they based it off of ATI/AMD's Imageon. "Adreno" is even a reference to its origins, it's an anagram of "Radeon".

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          • Anonym
          • Jyb
          • 18 Apr 2019

          Anonymous, 18 Apr 2019Apart from the fact that they don't make their own GPU, the... moreSorry to burst your bubble, but if you acquire and merge a company, everything that company has ever made is now a part of your portfolio. That is the definition of merging, you don't suddenly stop being the ones that invented that tech or made that product, all that changes is the corporate structure: you are now a unit of a larger company (which has a different brand name, but retains all the history and bragging rights).

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            • Anonymous
            • pqv
            • 18 Apr 2019

            OSasmatteroffact, 17 Apr 2019I wonder why dont they jut make their own 5G modem, they co... moreApart from the fact that they don't make their own GPU, they just bought a GPU manufacturer company and rebranded it as their own.
            Just as their SOCs are also just rebranded chips. They ain't make anything, they just put a apple logo on it and charge 300% price for the nothing.

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              • AnonD-731363
              • SH3
              • 18 Apr 2019

              dsdfs, 18 Apr 2019just the usual, add a new "feature" like one more camera or... moreGood point one more camera will do 500 bucks.
              And when 5G will finaly come even XR will cost 1600 bucks for LCD screen phone.
              And XS Max successor will start from 2500 or more.

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                • Anonymous
                • jIT
                • 18 Apr 2019

                Look who came crawling back xD Hahahaha xD

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                  • dsdfs
                  • K@X
                  • 18 Apr 2019

                  AnonD-731363, 17 Apr 2019Better question is how much they will milk their customers ... morejust the usual, add a new "feature" like one more camera or smaller notch then slap 500USD more on it.

                    • ?
                    • Anonymous
                    • Gfx
                    • 18 Apr 2019

                    Moj, 17 Apr 2019yes! all they are "designers" not "innovators"Innovations are results from designers. You are just lame.

                      AnonD-731363, 17 Apr 2019Calling a thief a marketer heh good point. Its same like ... moreIt would be like calling you unbiased, yeah funny.

                      PS: take a step back, take a deep breath, life isn't as pessimistic as you make it out to be
                      And have a nice day : )

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                        • Bewildered
                        • 39x
                        • 18 Apr 2019

                        Kangal, 17 Apr 2019Just like the 4G/5G radios, the software was not invented b... moreCorrection
                        IOS is a Nokia licensed software
                        Just before Apple started suing Samsung it was involved in a long running dispute with Nokia as IOS had incorporated Nokia patented processes
                        https://www.bloomberg.com/news/articles/2011-06-14/nokia-apple-payments-to-nokia-settle-all-litigation

                        By 2007 the vast majority of both software and hardware invention had already been registered

                        2020 for the 5G iPhone is typical of Apple walking backwards toe to heel when it comes to real incremental updates to phone updates

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                          • mark
                          • PMa
                          • 18 Apr 2019

                          Whackcar, 17 Apr 2019If you look at Apple products, you'll notice that practical... morei think you dont know nothing.. Apple design their cpu/gpu/motherboard/ but they will only hire other company to manufacture those things caused its cheaper to outsourced the manufacturing side than to build their own manufacturing. Its the same with huawei and other companies. huawei's cpu and modem are design by them but TSMC is the manufacturer.

                            Ha ha ha...

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                              • AnonD-731363
                              • SH3
                              • 17 Apr 2019

                              I bet a Trumps heart would stop and emlt into pieces if apple makes deal with Huawei about Balong 5000 supply.

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                                • AnonD-731363
                                • SH3
                                • 17 Apr 2019

                                Anonymous, 17 Apr 2019Lol... wonder how much they paid Qualcomm in this settlementBetter question is how much they will milk their customers with upcomming apple phones.
                                This price paid to qualcomm will only shed apple customers.

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                                  • AnonD-731363
                                  • SH3
                                  • 17 Apr 2019

                                  Anonymous, 17 Apr 2019At least they have softwareEven that has been talen from google and rebranded to suit their needs.

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                                    • AnonD-731363
                                    • SH3
                                    • 17 Apr 2019

                                    ZolaIII, 17 Apr 2019They make $$$. The SoC is manufactured by TSMC but it's ac... moreStill is made by TSMC and sold by TSMC apple have nothing with that.
                                    TSMC is planter for their chips not apple.
                                    Apple is just harvester,

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                                      • AnonD-731363
                                      • SH3
                                      • 17 Apr 2019

                                      Kangal, 17 Apr 2019Apple are designers, and there's nothing inherently wrong w... moreCalling a thief a marketer heh good point.
                                      Its same like calling a bank robber accountant or calling a tractor a car because it have a motor meh funny.

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                                        • Adul Al Salami Kebab
                                        • nrX
                                        • 17 Apr 2019

                                        DroidBoye, 17 Apr 2019Apple has no choice but to have truce with Qualcomm because... moreThey could have gotten chips from Huawei but the US govt would have caused issues for Apple if they went with a Chinese chip maker...