Following the settlement between Qualcomm and Apple, which saw the two companies coming to a long-term agreement for modems and other smartphone-related elements, Intel announced an exit from the smartphone modem market. And now Apple may buy a key element of that business.
The iPhone maker Apple and the chip maker Qualcomm have recently settled their long-running intellectual-property quarrel over cellular technologies, which includes a payment from the former to the latter, and we now have our first look at the size of the legal agreement.
Respected Apple analyst Ming-Chi Kuo of TF International Securities believes that Intel's unexpected move to exit the 5G modem business has left Qualcomm in full control of the 5G smartphone modem roadmap and removed uncertainties in terms of a 5G iPhone.
Apple's recently-announced settlement with Qualcomm didn't come cheap, according to UBS analyst Timothy Arcuri. In a research note released Thursday, Arcuri said the iPhone-maker likely paid between $5 and $6 billion to put a stop to the bevy of legal battles between the two companies.
Hot on the heels of the settlement news between Apple and Qualcomm, Intel has announced that it is exiting the 5G smartphone modem business. In a press release late Tuesday afternoon, the company said it sees "no clear path to profitability" in the space.
Apple and Qualcomm have reached a settlement in their ongoing royalty dispute. The two companies issued a press release Tuesday afternoon, stating that they will drop all litigation and enter a six-year licensing agreement, effective as of the beginning of this month.
Apple's expectedly pulled the iPhone 7 and 8 models from sale in Germany following a legal spat with chip maker Qualcomm, which proved in court that Apple violated its hardware patent.
After China's iPhone injunction, Qualcomm has recently secured another sales ban, this one in Germany, and now the chip maker has put aside €1.34 billion, or approximately $1.5 billion, in security bonds which are required to enforce German ruling.
Qualcomm has secured another victory in its legal spat with Apple, this time in Germany after a Munich court ruled that some iPhone models that employ Intel-made cellular modems violate a Qualcomm patent which covers so-called envelope tracking, a feature that helps smartphones save battery power while sending and receiving wireless signals.
Apple's acknowledged that the iPhone-exclusive iOS 12.1.2 software update has indeed circumvented a pair of Qualcomm patents—in spite of Qualcomm's claims to the contrary.
Even though Apple has not officially confirmed that the latest iOS 12.1.2 update does pack in fixes for a pair of Qualcomm software patents that were supposed to remove any infringing functionality, Qualcomm told Reuters yesterday that the Cupertino firm remains in violation of a Chinese court’s orders to stop selling iPhone 6s through iPhone X in the country.
Apple will soon release special iOS updates to its Chinese customers that were specifically created to circumvent a pair of patents, owned by Qualcomm, which are essential to an iPhone injunction that the chip maker has won recently in the 1.33 billion people country.