Displaying items by tag: chipmaker
The US manufacturer of superchips that powers our smartphones has seen its shares plummet following an antitrust ruling.
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.
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.
A prominent Apple executive has testified that Qualcomm refused to let the US technology behemoth use its chip technology in their latest line of iPhones due to an ongoing dispute between the two companies over licensing fees.
The admission was made by Apple COO Jeff Williams, during court proceedings in relation to an antitrust lawsuit filed by the US Federal Trade Commission.
Williams told the court that the global smartphone manufacturer expressed a desire to use both Qualcomm and Intel chips in its 2018 iPhones, but stated that Qualcomm withdrew support for Apple by refusing to sell them chips.
In addition to this, he disclosed that Apple has not been able to reach an agreement with the US chipmaker in relation to a new design since it filed a lawsuit in January 2017, which accused Qualcomm of using anticompetitive licensing tactics.
Williams also detailed the company’s fee negotiations with Qualcomm, noting Apple repeatedly traded exclusivity for a lower chip cost in order to keep the latter’s technology in its devices. Williams said, “We needed their chip supply, and we didn’t have a lot of options.”
Qualcomm has yet to mount its full defence in the litigation proceedings. However, it must be said that the claims made by Williams come in stark contrast to testimony provided by Qualcomm CEO Steve Mollenkopf last week.
Reuters published a report which claimed that the Qualcomm CEO declared that the chipmaker had sought an exclusivity arrangement not to shut out the competition, but instead to ensure it would recoup a $1 billion “incentive payment” made to Apple in 2011 in an effort to help cover technical transition costs incurred in switching chip suppliers from Infineon.
Williams’ statements were also contradicted by comments made by Qualcomm president Cristiano Amon during an earnings call in July 2018 noting the company would gladly be an Apple supplier again if the opportunity presents itself.
Mollenkopf also stressed that there was no reason the pair could not work together again noting that it makes sense that the technology leader in mobile should partner with the product leader.
Qualcomm’s legal spat with Apple could affect its Q4 earnings, the chipmaker disclosed in a regulatory filing seen by Reuters, where it responded to questions from the US Securities and Exchange Commission. The company is set to issue its next quarterly results filing on November 1, revealing its earnings for the fourth quarter.
Revenue for Qualcomm’s CDMA technology business, which makes chips for smartphones including iPhones, has declined and may continue to do so, the company said, in part depending on the extent of Apple’s use of rivals’ modems and the variations of versions that are sold.
Apple has adopted a dual-sourcing approach, whereby some iPhone 7s have been shipped with Intel chips rather than Qualcomm ones, which used to be Apple’s only source.
Apple and Qualcomm are locked in a legal battle, with the iPhone maker objecting to Qualcomm’s business model of requiring partners to sign patent license agreements before purchasing chipsets. Qualcomm is feeling the impact of Apple’s outsourcing since Apple, along with Samsung, accounted for 40 percent of Qualcomm’s revenue in fiscal 2016.
In its Q3 earnings report, Qualcomm said its legal dispute with Apple contributed to a decline of 40 percent in profit for the three months ending June 25. Qualcomm CEO Steve Mollenkopf said to investors on an analyst call that the spat would likely affect Qualcomm’s fiscal Q4 earnings.
The United States International Trade Commission (ITC) has commenced an investigation into Apple, Qualcomm recently announced, to examine whether Apple engaged in unfair trade practices by importing and selling certain mobile electronic devices, including iPhones and iPads that infringe one or more claims of six Qualcomm patents.
The investigation is based on a complaint filed by Qualcomm on July 7, 2017. Qualcomm is requesting that the ITC issue a Limited Exclusion Order to bar importation, and a Cease and Desist Order to bar further sales and marketing in the United States, of iPhones and iPads that use cellular baseband processors other than those supplied by Qualcomm’s affiliates.
In addition to the complaint filed with the ITC, on July 7, Qualcomm filed suit against Apple Inc. in the U.S. District Court for the Southern District of California alleging that Apple infringes the same six patents in the complaint filed in the ITC. Qualcomm has also sued Apple for patent infringement in Germany. That lawsuit, commenced on July 17, 2017, seeks damages and injunctive relief for iPhones imported into or sold in Germany.