Intel abandons 5G iPhone plans following Apple's Qualcomm settlement

Apple and Qualcomm Settle Sweeping Patent Suits - Thurrott.com

The settlement includes a payment from Apple to Qualcomm, although the companies did not specify the amount. Following initial lawsuits, Apple had to rely exclusively on Intel to provide LTE modems for iPhones, thus eliminating its reliance on Qualcomm, until now, it seems.

"This is a big win" for Qualcomm, said Christopher Rolland, an analyst at Susquehanna Financial Group.

Earlier the same day, Apple had fired the first legal shots in a San Diego courtroom, accusing Qualcomm of abusing its market power. However, the entire game changed in the last few 12 hours.

The two companies had been at odds over patents and royalties over modems.

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The deal could help Qualcomm return to the preeminent position it held in the early 2010s when it dominated the transition to 4G mobile networks and expanded revenues dramatically. The back story It is said that Apple had Qualcomm as it's best option because not only the US-based chipmaker is familiar with Apple's tech but also all other options were not up to the mark.

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. And Intel had announced a new 5G chip for smartphones, which the company plans to ship in commercial devices starting in 2020. Apple executives testified in January at a trial between the U.S. Federal Trade Commission and Qualcomm that Apple's policy is always seek several suppliers. Although that gave Apple a way to keep making iPhones there was a cost. Qualcomm stock has exploded upwards on this guidance, rising 20 percent. It's getting a payment from Apple, and a multi-year deal to supply chips for iPhone.

Now that the dust has settled, Apple can start testing a 5G-enabled iPhone with Qualcomm's latest and faster modems. As you might imagine, billions of dollars are up for grabs in this case and both Apple CEO Tim Cook and Qualcomm CEO Steve Mollenkopf are expected to testify. As a part of the settlement worldwide, Apple will be paying Qualcomm. Ahead of Apple and Qualcomm burying the hatchet, Intel acted as a bit of a bargaining chip for Apple by supplying modems for some iPhone models despite generally offering weaker performance than the Qualcomm alternatives.

The Cupertino company says Qualcomm withheld payments it owed as a means of retaliation for Apple's cooperation with South Korean investigators. MediaTek was regarded not up to the mark, Intel reportedly was running behind deadline.

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