Intel walks away from 5G smartphone modem

17 Avril, 2019, 19:26 | Auteur: Auguste Feret
  • Intel walks away from 5G smartphone modem

Now that Apple has settled with Qualcomm, however, it doesn't have to worry about its 5G future.

The loss of Intel as a pseudo-competitor in some ways plays into Apple's argument that Qualcomm has a monopoly on this technology, but frankly the issues with Intel being unable to compete on a basic technology performance level were bound to be there regardless. Companies sometimes make these sorts of calls - or simultaneously fight each other in court while collaborating on business matters, as Apple and Samsung have done.

Huawei has cast doubt on its founder's claims that the company could supply rival Apple with 5G modem chips.

Qualcomm stock rose more than 20% after the news broke, boosting its market cap by about $14.5 billion to more than $84 billion.

It was rumoured that Apple's 2020 iPhones would also feature modems made by Intel, but recent reports claimed that Apple had "lost confidence" in the chipmaker, which had been missing deadlines for the development of its XMM 8160 5G modem.

Apple had accused Qualcomm of using illegal patent practices to keep a monopoly on modem chips that connect phones to mobile data networks. The company has been developing its own modems but those weren't expected to be ready until 2020 at the earliest, with 2021 being a more realistic date.

Qualcomm was seeking $7 billion for unpaid royalties it contended it was owed for its patented technology in the iPhone.

The back-and-forth between Apple and Qualcomm started in January 2017.

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The settlement was reached just one day after the two companies' antitrust trial began in federal court in San Diego.

Neither Apple nor Qualcomm would comment beyond a brief statement announcing they had resolved their differences.

Apple licensed Qualcomm's technology for the iPhone early on, helping the phone maker break into the wireless industry. It also includes a six-year licensing agreement that likely involves recurring payments to the mobile chip maker.

Apple used Imagination chips for the iPhone's GPU, and it hit the supplier hard when Apple said it didn't need them anymore.

Following its initial United States lawsuit, Apple filed two more suits in China on the same basis.

The last-minute settlement cut short a courtroom clash between the tech giants just as it was getting underway in California.

Meanwhile, by the end of 2018, Qualcomm had secured a ban on the sale of certain iPhones in China and Germany - again for patent violations.

On the other hand, Qualcomm has talked about the settlement of all litigation against Apple in a blog post.

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