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

Huawei talks of selling its 5G chips to Apple | Article

Huawei talks of selling its 5G chips to Apple | Article

Apple accused Qualcomm, which holds the most patents for chips, of taking advantage of its dominant position to charge exorbitant amounts for its chips or access to its patents.

The fight centred on royalty payments that Apple made to Qualcomm for using the latter's modem chips, which provide smartphones with a means of accessing mobile data networks.

The settlement followed two years of increasingly bitter legal battles between the two companies and came as opening arguments took place at a trial in federal court in San Diego.

"All litigation between the two companies worldwide" has been dropped, the firms said in a joint statement. Among other things, Apple alleged that Qualcomm said it would not supply modems for the iPhone unless Apple agreed to pay higher licensing fees for a number of other patents.

The companies appeared in court on Monday in a trial that was expected to last for four to six weeks in San Diego.

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Following this news, Qualcomm saw its stock price rise more than 20% to a total market cap of $85 billion.

The prospective jurors who didn't make it on the panel included a retired employment lawyer, a man who volunteered that he didn't like the direction Apple had been going, and a "private fiduciary". The Federal Trade Commission sued Qualcomm in January 2017 as well, and over the same complicated reason.

Apple and mobile chip maker Qualcomm have settled a bitter financial dispute centered on some of the technology that enables iPhones to connect to the internet.

The Cupertino company says Qualcomm withheld payments it owed as a means of retaliation for Apple's cooperation with South Korean investigators. With iPhone X, both Intel and Qualcomm were the suppliers. In return, the chipmaker filed a countersuit claiming that Apple throttled its chips in the iPhone 7, and tried to ban Apple devices in multiple countries. However Qualcomm has put out a summary slide disclosing that as product shipments ramp, the company is expecting the deal to bring the company's incremental earnings to around two dollars per share. Apple stock saw little change. However, if you're an iPhone user, and you want to keep using iPhones, you could have been left out if Apple didn't have access to a steady stream of 5G chips. Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio.

"In order to purchase Qualcomm chips or obtain access to patents pledged to a cellular standard, Qualcomm demands that third parties pay Qualcomm a royalty much greater than the value of Qualcomm's contribution to the standard", Apple argues.

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