Apple, Qualcomm Truce May Pave the Way for 5G iPhone

Mike Dano
4/16/2019
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The war is over. Apple and Qualcomm today announced a settlement that includes the end of all litigation between the two companies as well as a global patent license agreement and a chipset supply agreement.

The settlement includes a payment from Apple to Qualcomm, the companies said, but they did not provide any details.

"The companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement," the two firms wrote in a joint release. No more details were provided.

Qualcomm's shares were up $13.27 (23.21%) to $70.45 in regular trading on Tuesday. Intel shares remained relatively unchanged.

As noted by the Wall Street Journal, Qualcomm was Apple's exclusive chipset supplier for the iPhone from 2011 to 2016, with Apple paying Qualcomm roughly $7.50 in royalties for every iPhone it sold. Then, with the 2016 iPhone, Apple added Intel as a chipset supplier.

In January 2017 Apple slapped Qualcomm with a lawsuit alleging the company was overcharging for access to its patents. The resulting, bruising legal battle spanned courtrooms across the globe. This week lawyers for the companies prepared opening arguments in a San Diego courtroom to kick off another round of legal warfare.

Why this matters
The settlement brings to an end a massive, global, two-year battle between one of the world's most valuable technology brands and the wireless industry's biggest vendor for smartphone chipsets. And the result, according to some industry observers, could be a new chipset supply agreement between Qualcomm and Apple wherein Apple would sell a 5G iPhone running chips from Qualcomm.

Qualcomm recently announced its second-generation 5G product for smartphones, a move that analysts said put Qualcomm ahead of rival Intel.

Intel promised its own 5G chip would be in commercial products by 2020.

Mike Dano, Editorial Director, 5G & Mobile Strategies, Light Reading | @mikeddano

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josephkarl
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josephkarl,
User Rank: Light Beer
4/18/2019 | 6:18:01 AM
5g mobile
By the post, we can see how the companies are making their products accessible to 5g service. I have once got a new device when the 4g service has come but at that time I got 

outlook 0x8004010f because the connectivity issue was there.
sinan7
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sinan7,
User Rank: Light Beer
4/16/2019 | 10:13:12 PM
Intel's April 16 Announcemnt
Right on cue ... https://newsroom.intel.com/news-releases/intel-modem-statement/#gs.63jwwb

 

SANTA CLARA, Calif., April 16, 2019 – Intel Corporation today announced its intention to exit the 5G smartphone modem business and complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices. Intel will also continue to invest in its 5G network infrastructure business.

The company will continue to meet current customer commitments for its existing 4G smartphone modem product line, but does not expect to launch 5G modem products in the smartphone space, including those originally planned for launches in 2020.

"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. "5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. We are assessing our options to realize the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world."

Intel expects to provide additional details in its upcoming first-quarter 2019 earnings release and conference call, scheduled for April 25.