Displaying items by tag: Qualcomm

US chipmaker sees shares plunge after antitrust ruling

Written on Thursday, 23 May 2019 07:59

The US manufacturer of superchips that powers our smartphones has seen its shares plummet following an antitrust ruling.

Published in Finance

US chipmaker Qualcomm has seen its shares prices soar on the New York Stock Exchange following the end to a long-running dispute between them and iPhone manufacturer Apple over patent license agreements.

The pair where set for another protracted legal battle in San Diego but managed to broker an agreement that satisfied both parties over royalty payments.

It has been reported that resolution deal between Apple and Qualcomm includes a six-year license agreement with the option to extend for two years, and a payment to Qualcomm from the US tech behemoth.

Qualcomm shares rocketed by 15.2% as news of the deal broke on Wall Street. Apple saw its share price rise by 0.7% although it was significantly less than that of Qualcomm. Dow member IBM saw its shares plummet by 4.6% after Q1 sales fell short of analyst projections.

The US economy has been under the microscope in recent weeks after some fiscal analysts had claimed it was slowing down. However, Wall Street stocks were mostly higher following better-than-expected Chinese economic data.  China's first-quarter growth came in at above expectations at 6.4 percent following government stimulus measures, a report that eases concerns about slowing global growth.

Published in Finance

US electronics behemoth Intel has made the decision to withdraw from the 5G smartphone modem business following the unlikely resolution agreement that was brokered between Qualcomm and Apple.

Apple and Qualcomm managed to settle the dispute between both parties over royalty payments and reached a deal ahead of fresh court case that was set to get underway in San Diego next week.

The modems that connect smartphones to telecommunications networks were at the heart of the battle between Apple and Qualcomm. Following the announcement the dispute had been resolved Intel wasted no time in exiting the 5G smartphone modem business.

Intel had clearly recognized and identified that there was an opportunity for them to capitalize on the dispute between Apple and Qualcomm, and then Apple had turned to Intel before reaching the agreement with Qualcomm.

The lawsuit was expected to be a protracted legal battle, but after the unlikely resolution it’s expected that Apple and Qualcomm will now become partners again before there fall out in 2017.

Intel issued a statement in which it indicated that it would complete an assessment of the opportunities for 4G and 5G modems in PCs, Internet of Things devices and other data-centric devices while pursuing investment opportunities in its 5G network infrastructure business.

CEO Bob Swan insisted that 5G will remain a key focus for the US electronics conglomerate and said its diverse portfolio of products will help them to become a major player in the 5G space.

Swan said, “5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. We are assessing our options to realize the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world."

The company also added that it would meet commitments to customers for its existing 4G smartphone modem product line, though it has no plans to launch 5G smartphone modem products, including those previously set to premiere in 2020 

Currently under deployment, ultra-fast 5G wireless networks require terminals that are equipped with 5G models and specific network infrastructure.

Published in Devices

Apple and US chipmaker Qualcomm will resume their long-running feud as a new court case between the two titans of American enterprise begins in San Diego next week.

The two companies have been embroiled in a bitter row over patent licensing practices for the best part of two years. Last month, a Californian jury ruled in favour of Qualcomm and awarded the company $31m after it found that Apple’s iPhone 7, 7 Plus, 8 and 8 Plus and X infringed two patents.

Apple has expressed its confidence that this new lawsuit in San Diego will rule in their favour as they seek damages of up to $27bn after accusing its one-time supplier of engaging in patent license practices that amounted to double-dipping.

Qualcomm on the other hand are claiming that the US technology behemoth forced some of it business partners to stop paying the company royalties and is seeking $15bn in damages.

The initial lawsuit was filed by Apple back in 2017, which forced the US chipmaker to counter-sue the iPhone maker and winning bans on the sale of some iPhone models in some markets for patent violations.

Qualcomm charges its customers for the chips themselves and also adds on patent licensing charges. It asks customers to sign an agreement before supplying any products.

Apple has termed this "no licence, no chips" policy a way of charging twice for the same thing. Along with its business partners, Apple is seeking an end to this practice and a refund of something in the region of US$9 billion.

This amount could be tripled if the jury comes to the conclusion that Apple's anti-trust allegations against Qualcomm are correct. Apple claims Qualcomm's practices kept rivals like Intel - from whom Apple is now sourcing chips - from competing in this sector for a long time.

Companies that are on contract with Apple, such as Foxconn, have paid the royalties to Qualcomm and been reimbursed by Apple. But Apple has pushed some of these firms to violate their contracts and deprive Qualcomm of about US$7 billion in royalties, the chip producer claims.

A victory for Apple will not mean much in terms of money but it would destroy a business model that Qualcomm has used with great success for many years.

Published in Finance

US technology giant Apple is reportedly mulling over the prospect of entering into an unlikely partnership with Chinese vendor Huawei in an effort to address issues with the modem technology in its flagship iPhones.

Published in Devices

US judge places temporary ban on iPhone imports

Written on Thursday, 28 March 2019 08:07

On Tuesday, a US trade judge has called for a ban of some iPhone imports as Apple was found to have violated a Qualcomm chipmaker patent.

International Trade Commission administrative law specialist MaryJoan McNamara recommended a “limited exclusion order together with a cease and desist order” against the tech ginat.

Since the iPhone does not compeet with Qualcomm products, Apple will not be required to post a bond while US President Donald Trump and a panel of judges review the order.

Qualcomm released a statement which read: "We appreciate Judge McNamara's recognition of Apple's infringement of our hardware patent and that she will be recommending an import ban and cease and desist order.”

Apple has not replied to a request to post a comment on the matter as of yet.

The patent which is being investigated involves extending power and battery life. The issue at hand constitutes for one of the two complaints that Qualcomm officially issued against Apple to the commission.

Qualcomm shares went up by 2.4 per cent while Apple’s shares were down by at least 1 per cent  as soon as the ruling was released.

The California-based tech giants have been involved in a long-term battle over patents and royalties which have taken to the courts and other administrative bodies on a global scale.

Last week, Qualcomm won a case against Apple over patented technology which was found to be used in iPhones and won $31 million. These chips were found to have been used on the iPhone 7, 8 and X.

Other patents at issue were “flashless booting” which allows for devices to connect to the internet quickly as soon as they are switch on and allows smartphone apps to move data online in an efficient manner.

In addition to this, another patent would be using rich graphics in games whilst still maintaining battery life.

Apple sued Qualcomm a couple of years ago over payments for a preliminary ruling which involved Qualcomm owing Apple around $1 billion in patent royalty rebate payments which has not been paid yet. The judge’s decision is still to be determined.

Published in Government

Qualcomm awarded $31m in patent legal battle with Apple

Written on Monday, 18 March 2019 13:29

US chipmaker Qualcomm has won its protracted legal battle with Apple over patented technology used in iPhones.

A jury in a federal court in Southern California ordered that Apple pay Qualcomm $31m after deliberating that the smartphone manufacturing behemoth had committed patent infringements for chips used on iPhone 7, 8 and X models.

The damages were tabulated from July 6, 2017 through the end of the trial, according to a Qualcomm statement. The legal representative for the chipmaker expressed their delights at the jury’s decision following a lengthy judicial process.

Qualcomm’s general counsel Don Rosenberg said, “Today's unanimous jury verdict is the latest victory in our worldwide patent litigation directed at holding Apple accountable for using our valuable technologies without paying for them. 

Qualcomm shares closed the formal trading day up 2.2 percent to $56.60.

The patents at the center of the issue in the case involved "flash-less booting" that allows devices to connect quickly to the internet after being turned on and technology that lets smartphone apps move online data efficiently

A third patent related to promoting rich graphics in games while protecting battery life, according to Qualcomm.

On another front in the complex legal battle between two US companies a federal judge in Southern California on Thursday issued a preliminary ruling that Qualcomm owes Apple nearly a billion dollars in patent royalty rebate payments the chip maker is withholding, according to US media reports.

 Apple sued Qualcomm two years ago over the payments, which were part of a contracted arrangement. The judge's decision will be on pause until after a trial in the case. Apple did not immediately respond to a request for comment.

Published in Finance

ZTE, a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, is demonstrating 5G network services based on an end-to-end sub-6GHz commercial system, in collaboration with Qualcomm Technologies, Inc.

The live demonstration verifies ZTE and Qualcomm Technologies’ strong 5G technology capabilities to achieve end-to-end 5G commercialization.

The demonstration over 5G NR radio utilizes a real-world end-to-end 5G NR network built with ZTE’s commercial core network and radio base station equipment, as well as a ZTE 5G smartphone powered by the world’s first commercial 5G mobile platform—the Qualcomm® Snapdragon™ 855Mobile Platform paired with the Snapdragon X50 5G modem, as well as Qualcomm Technologies’ RF transceiver and RF front-end solutions. Fully compliant with 3GPP R15, the demonstration is based on NSA networking mode, the N78 5G band and harnesses the LTE B1 band as an access anchor.

For this demonstration, ZTE provides a comprehensive end-to-end solution, including the One for All base station platform solution at the wireless side to support 2G/3G/4G/5G on a single site as well as multimode baseband units (BBU) that provide the maximum 2G/3G/4G/5G processing capacity and is the largest number of interfaces in the industry.

Furthermore, the demonstration adopts ZTE’s “Common Core” core network with a full convergence of 2G/3G/4G/5G/fixed networks and UME, a converged network management solution for intelligent operation and maintenance.

"The collaboration between ZTE and Qualcomm Technologies at MWC 2019, on the demonstration of 5G services based on ZTE’s 5G mobile device and system, is a testament to our efforts for 5G commercialization,” said Xu Ziyang, CEO at ZTE. “It indicates a great step towards making 5G a commercial reality.” 

“The 5G NSA live demo at MWC, based on the commercial infrastructure from ZTE using Qualcomm Technologies’ 5G modem and RF front-end, gives us a glance of 5G user experiences expected on commercial devices in 2019,” said Frank Meng, chairman of Qualcomm China. “We look forward to continuing working with ZTE and other leading companies across the ecosystem in accelerating the rollout of 5G networks and devices.”

In the process of promoting 5G commercialization, ZTE has been actively working with industry partners on the verification of key technologies and solutions, as well as network deployments. ZTE is also leading in test progress and performance. Backed up with 5G tests and cooperation with more than 30 operators around the world, ZTE is ready for the upcoming 5G commercialization and rollouts.

Published in Telecom Vendors

Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, announced the Snapdragon X55 5G modem, its second-generation 5G New Radio (NR) modem. Snapdragon X55 is a 7-nanometer single-chip integrated 5G to 2G multimode modem that supports 5G NR mmWave and sub-6 GHz spectrum bands with up to 7 gigabits per second (Gbps) download speeds and 3 Gbps upload speeds over 5G, and Category 22 LTE with up to 2.5 Gbps LTE download speeds.

The Snapdragon X55 5G modem is designed for global 5G rollouts with support for all major frequency bands, whether mmWave or sub-6 GHz, supports TDD and FDD modes of operations and is capable of both Standalone (SA) and non-standalone (NSA) network deployments – providing flexibility and enabling virtually all deployment types globally. In addition to deployments in greenfield frequency bands allocated for 5G, the Snapdragon X55 modem is engineered to support dynamic spectrum sharing between 4G and 5G, enabling operators to accelerate 5G deployments by using their existing 4G spectrum holdings to deliver both 4G and 5G services dynamically.

“Qualcomm Technologies is spearheading the first wave of 5G launches with our first generation 5G mobile platform. With significant evolution in capabilities and performance, our second generation commercial 5G modem is a true testament to the maturity and leadership of our 5G technology. We expect our 5G platform to accelerate 5G commercial momentum and power virtually all 5G launches in 2019 while significantly expanding the global 5G rollout footprint,” said Cristiano Amon, president, Qualcomm Incorporated.

The Snapdragon X55 5G modem pairs with the newly announced 5G mmWave antenna module (QTM525), a new single-chip 14nm RF transceiver for 5G sub-6 GHz and LTE, and sub-6 GHz RF front-end modules to deliver the next generation modem-to-antenna solution for all major spectrum bands, helping customers to build 5G devices quickly, and at global scale. Snapdragon X55 is designed to bring 5G to a broad range of devices including premium smartphones, mobile hotspots, Always Connected PCs, laptops, tablets, fixed wireless access points, extended reality devices, and automotive applications.

Snapdragon X55 is the first announced modem to support 100 MHz envelope tracking technology, and adaptive antenna tuning for 5G sub-6 GHz, designed for power-efficient connectivity for the next generation of smartphones and mobile devices. Our comprehensive modem-to-antenna solution is designed to enable OEMs to quickly and cost-effectively develop complex 5G multimode smartphones and mobile devices for virtually any 5G network or region in the world. This can allow consumers to enjoy fiber-like browsing speeds and low latency, delivered wirelessly over 5G, for the next generation of connected applications and experiences, including connected cloud computing, highly responsive multiplayer gaming, immersive 360-degree video, and instant apps.

Snapdragon X55 is currently sampling to customers and expected to be in commercial devices by late 2019. For more information visit https://www.qualcomm.com/products/snapdragon-x55-5g-modem.

Published in Telecom Vendors

US chipmaker Qualcomm has robustly defended its business practices as the antitrust lawsuit against them draws to a close.

In their closing testimony Qualcomm declared that the US Federal Trade Commission (FTC) had ultimately failed to prove that the chipmaker’s business practices had harmed its competitors during the course of the trial.

FTC have alleged that Qualcomm used its market dominance in its smartphone chip development to force phone suppliers to pay higher patent licensing fees, in other words it claims the company which is headquartered in San Diego had an unfair monopoly.

Both parties now must wait for the ruling from the judiciary, although reports have suggested that the decision is not likely to be delivered any time soon.

In a statement which summarized Qualcomm’s closing argument in court, the company’s EVP and general counsel Don Rosenberg said the FTC hasn’t come close to meeting its burden of proof in this case.

Rosenberg said, “All real-world evidence presented at trial showed how Qualcomm’s years of R&D and innovation fostered competition, and growth for the entire mobile economy to the benefit of consumers around the world.”

In addition to this, Rosenberg highlighted that Qualcomm’s licensing rates were established long before it had set up its lucrative chip business and accurately reflected the value of its comprehensive patent portfolio.

The FTC closed their arguments by stressing to the judiciary that the powerful chipmaker had used its muscle and dominance in the 3G and 4G chip market to force smartphone manufacturers like Apple to sing licensing agreements with excessively high royalties.

Prosecutors on behalf of FTC argued this approach would continue in the 5G era if Qualcomm isn’t stopped.

During the trial, the FTC called witnesses from a number of handset companies including Apple, Samsung, Intel and Huawei to testify that Qualcomm had used unfair practices, harming competition in the industry.

Published in Telecom Vendors
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