Apple and Qualcomm are currently in a death’s embrace. Both companies have been firing lawsuits after lawsuits at each other for quite some time now. It is undeniable that the relationship has now been strained especially after one calling the other “unfair” and the other retaliating with an import ban. Now, rumor has it that Apple has gained a new ally with regards to the iPhone 8 that may spell disaster to Qualcomm.
Over the past few years, Apple has been dependent on Qualcomm to provide its products for Apple’s range of mobile devices. These are mostly broadband or wireless modems used on most of the iPhones in the market.
Last year, Qualcomm has controlled the majority of supplies for the iPhone’s modems. The other part of the spectrum was held by Intel, with its subpar chips. Last year, however, Digitimes reports that the supply for wireless modems will be split equally between Qualcomm and Intel. Furthermore, the report also mentioned that Apple is planning on giving Intel much of the supply percentage by 2018. This could potentially mean the end of Qualcomm modem’s inside the future iPhone and iPad devices.
The only real reason that Apple chose Qualcomm is the fact that it has the better technology when it comes to wireless modems. However, since the release of Intel’s XMM 7560 LTE modem, this will soon change. This is because the said chip is capable of reaching a theoretical 1GB bandwidth.
The recent counter lawsuits against each other has certainly not helped Qualcomm’s reputation in this regard.
It should be noted that Apple, early this year, withheld almost $1 billion of royalties to Qualcomm on the basis of unfair monopoly. After that, Qualcomm fired with a counter lawsuit regarding patents that are used on the iPhones and has sought to get the said devices banned in the United States. Because the court has ruled in favor of Apple, a few companies have started following suit by not paying royalties to Qualcomm. This has infuriated Qualcomm which leads us to the current predicament.
Unless Qualcomm does something drastic about the matter, it risks losing quite a big chunk if its earnings. For more tech update, be sure to check us out at The Bitbag.