Sunday, 16 June, 2019

Intel Abandons 5G Modem Development For Phones Following Apple And Qualcomm Truce

Apple and Qualcomm Settle Sweeping Patent Suits - Thurrott.com Qualcomm and Apple Settle Long-Running Patent Royalty Dispute
Sandy Mccarthy | 17 April, 2019, 16:09

Qualcomm contended that Apple owed it money for royalty payments related to its technology while Apple said the company was trying to try an unfair rate for essential technology.

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

Hours after the Apple-Qualcomm settlement was announced, surprise, surprise, Intel declared it will quit building 5G modems for smartphones. That trial is now over, as are all of Qualcomm and Apple's other legal tussles across the world. As a result, Apple's attorney might be able to convince a jury that Qualcomm is not entitled to royalties based on the price of a complete smartphone.

According to Apple, this allowed Qualcomm to leverage "its market power to extract exorbitant royalties" and the company later only agrees to lower the royalty rates "in exchange for additional anticompetitive advantages and restrictions on challenging Qualcomm's power, further solidifying its stranglehold on the industry".

The two companies have been at odds since Apple ordered its suppliers to stop paying patent royalty fees to Qualcomm in 2017. "We are very excited about the opportunity in 5G and the "cloudification" of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns", said Intel CEO Bob Swan. Furthermore, it shows how hamstrung Apple was without Qualcomm: Its agreement with Intel to supply mobile chipsets, especially for modems, has been a disaster. Sign up today to get wireless news and updates delivered to your inbox and read on the go.

TikTok ban in India: Google blocks Chinese app after Madras HC order
As per the proceedings in the Supreme Court today, the Madras High Court will hear the matter on ex parte ad interim order . The case is up for hearing in the Madras High Court, after which the SC will decide on its fate on 22nd April.

It also signals that Apple was pretty much Intel's only buyer of its planned 5G phone chipset, and with today's deal with Qualcomm in the bag, there isn't much point in Intel continuing.

Apple had been seeking at least $1 billion while Qualcomm was seeking $7 billion for unpaid royalties it contended it was owed for its patented technology in the iPhone.

CNBC was the first to report the settlement, with confirmation from Apple and Qualcomm coming shortly afterward Tuesday. Details from Apple and Qualcomm's court case revealed that the former had explored the use of Samsung and MediaTek chips but despite the Samsung Exynos Modem 5100 going into mass production, it is unclear if either company is a realistic option.

After years of global litigation, Apple and Qualcomm have settled all disputes.

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

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