A 5G iPhone Is Suddenly A Lot Closer

A 5G iPhone Is Suddenly A Lot Closer

Details about how much Apple and its iPhone suppliers will be paying Qualcomm could emerge in court documents or when the companies announce their latest financial results.

Hours after Qualcomm and Apple announced a six-year licensing agreement as part of a royalty settlement, Intel chose to exit the future 5G smartphone market.

The settlement came just as both companies were beginning a $30 billion federal court trial over just one aspect of the case.

The two companies have agreed on a patent licensing schedule and have agreed to drop all ongoing litigation against each other.

This means that Qualcomm's modem chips are likely to be used again in Apple's newest iPhone models.

Apple has been aggressively hiring RF engineers in San Diego, where Qualcomm is located. More recently it was reported that Intel was running behind schedule and Apple was considering tapping on the shoulders of other OEMs such as Samsung, Huawei and even MediaTek.

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Also in early 2017, the US Federal Trade Commission sued Qualcomm for alleged antitrust law violations in the sale of certain components and licenses to smartphone makers, including Apple.

The stakes had been especially high for Qualcomm given that it earns a significant chunk of its revenue from royalties paid by manufacturers for its patented technology.

Apple's litigation chief Noreen Krall chatted privately with Qualcomm attorney Mark Snyder before Judge Curiel called the jurors back into the courtroom.

Qualcomm said it expected a $2 increase in earnings per share and its stock rose over 20%. It has also been hit with competition fines in South Korea, although the Japanese authorities have found in Qualcomm's favor. "The settlement includes a payment from Apple to Qualcomm". Apple stock saw little change.

According to Apple, this allowed Qualcomm to leverage "its market power to extract exorbitant royalties" and the company later only agrees to lower the royalty rates "in exchange for additional anticompetitive advantages and restrictions on challenging Qualcomm's power, further solidifying its stranglehold on the industry".

Qualcomm had also accused Apple of using the legal system as a way to pay less for its technologies. While it's no big revelation that Apple's 2019 iPhone lineup will not include support for 5G, there have been rumblings that Intel might struggle to meet 5G modem production at the scale Apple needs. Apple claimed Qualcomm abused its position as the primary supplier of cellular chips and was overcharging for chips, using anti-competitive and monopolistic practices.

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