Apple and Qualcomm end legal fight over chipset licensing
Apple and Qualcomm end legal fight over chipset licensing
Viva Tung CNET
17 April, 2019, 13:31
Apple and Qualcomm have ended their contentious legal battle over microchip royalties with a surprise agreement to drop all litigation worldwide.
Along with licensing Qualcomm's patents, Apple is also going to resume buying chips from Qualcomm. The size of the payout has not been disclosed. "The companies also have reached a six-year licence agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement".
The settlement includes an unspecified payment from Apple to Qualcomm, which produced computer chips for the former's iPhone, the companies said in a joint statement.
Despite Apple's legal quarrels with Qualcomm, which has also developed fifth-generation modem chips, the USA company would most likely pass on Huawei's alternative, if for no other reason because of the political backdrop.
In recent weeks, there have been a lot of rumors that Huawei may become a potential modem supplier for Apple's first generation 5G iPhone.
"Both Apple and Qualcomm got deeper into this than they wanted to", Moorhead said. And no communication with Apple about 5G modems. Intel's chips aren't as fast as Qualcomm's and Intel is still some time away from having a 5G chipset ready for the market.
Well, that de-escalated quickly. The dispute stretched into courts on three continents.
At one point, the dispute looked like a boon for Intel.
Uncertainty over the availability of a 5G-equipped iPhone has weighed on the world's most valuable company - at $939 billion - as rivals unveil products such as foldable phones in a bid to revive stalling smartphone sales. This has been capped at $400 by Qualcomm, but still represents a much higher value than the $20 cost of a Snapdragon modem chip.
The big loser of the day, then, might end up being Intel. Apple stock increased by 2 cents to $199.25. In return, the chipmaker filed a countersuit claiming that Apple throttled its chips in the iPhone 7, and tried to ban Apple devices in multiplecountries. In short, Qualcomm is getting paid twice for the same technology.
Apple started using Qualcomm's chips, which allow the iPhone to connect to cellular networks, in 2011. It asked to pay only $1.50 per chip instead, or 5% of the chip's sale price.
According to ZDNet's sister site CNET, an Intel spokesperson declined to comment on whether the decision behind Intel's exit occurred before the settlement or was in response to the new agreements between Apple and Qualcomm.
Reuters reports that Terry Gou is halting his career there "to pave the way for younger talent to move up the company's ranks". Starting from this year, Foxconn technology will be starting the mass production of Apple's iPhones in India.
Having said that, the company had recently announced that it had removed videos which were in violation of their guidelines. TikTok even removed 6 million videos from its service last week to address the problem of inappropriate content on the app.
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