Displaying items by tag: Qualcomm
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.
As India prepares itself for the transition to 4G, Qualcomm has observed a 23% increase of revenue due to a demand surge for phones.
The American chipmaker powers more than half of all smartphones sold in India and posted sales of Rs 5,426 crore locking in a net profit of Rs 518 crore in FY18, financials sourced from research platform Tofler. The company’s growth slowed down from a year ago when it grew 39%, but has nearly doubled sales and profit over the past three years.
“There are two aspects that have stood out for India; one, this is a growing market for smartphones and two, the telecom carriers have also rapidly adopted 4G, which has transitioned this market totally from 3G to 4G and now is moving the 2G to 4G,” said Rajen Vagadia, country manager of Qualcomm India.
The telecom industry in the world’s second-most-populous nation is transiting rapidly to 4G data technology after the entry of RelianceNSE -0.39 % Jio. The Indian mobile network operator started services in September 2016, and helped spur data consumption in the country with its 4G-only network, meaning rivals Airtel and Vodafone were forced to slash its tariffs.
India mobile phone shipment crossed 300 million units for the first time ever with smartphones capturing almost 44% of the total volumes in CY 2017.
San Diego-based Qualcomm said it has evolved over the last few years supporting end-to-end product engineering, contributing to technology innovation in areas such as 4G, IoT and now 5G.
“This transition has been fuelled by solutions that Qualcomm provided, including the explosive growth of the Jio 4G feature phone at one end of the spectrum while our partners like Xiaomi have brought premium tier Snapdragon 845 at affordable prices,” Vagadia added.
Qualcomm’s Indian revenue doesn’t account sale of all its products in India however. A bulk of its transactions are with global suppliers in the US and China, which in turn market them in the country.
Shobhit Srivastava, research analyst, Mobile Devices and Ecosystems, Counterpoint Research says that most of the smartphones featuring Qualcomm’s Snapdragon chipset are in the mid and high tier segment, which explains the company’s billion dollar sales value in India.
”Qualcomm India can further grow its revenues given the OEMs (original equipment manufacturer) and ODMs in India start sourcing products directly with the advancing manufacturing and designing ecosystem in India,” he said in an interview to The Economic Times.
Qualcomm has helped bring features such as voice calls over a 4G LTE network and voice over Wi-Fi for consumers in India, by working closely with Indian cell carriers. The chipmaker said most companies were looking to launch major global technologies concurrently in India, making the country the first or second market for such rollouts.
Chipmaker Qualcomm has won a patent dispute against phone giant Apple.
Following a ruling in the District Court of Munich, Apple will no longer sell iPhone 7 and 8 across German stores and websites.
The court ruled that Apple phones were infringing on Qualcomm’s intellectual property related to power saving technology in two of its older smartphones.
Qualcomm was required to post a $1.34 billion security bond with German courts before it would take effect.
Apple’s German website no longer features the iPhone 7 and 8, listing only the newer models such as the iPhone XR, XS, and XS Max.
The court has also ordered Apple to recall infringing iPhones from third party resellers.
Contrary to the ban, Apple assured that “all iPhone models remain available to customers through carriers and resellers in 4,300 locations across Germany,” and has plans to appeal the ruling.
The injunction is the latest development amidst an ongoing feud between Apple and Qualcomm. The California-based phone maker sued Qualcomm in the United States and in China, accusing the company of extortion and anticompetitive conduct in its negotiations over patent licensing.
In December, Qualcomm won a Chinese lawsuit that forced Apple to recall its products due to a copyright infringement. The court ruled that Apple had violated two of Qualcomm’s software patents specifically related to resizing pictures and managing applications.
To lift the ban, Apple released a small update to its iOS version 12.1.2, which contains software changes exclusive to China.
Following the hearing, Apple described the ban as “another desperate move by a company whose illegal practices are under investigation by regulators around the world.”
Telecom Italia (TIM), Qualcomm Technologies and Ericsson have successfully completed the first, live video call in Europe using 5G millimeter wave (mmWave) spectrum.
The partners used a smartphone equipped with the Qualcomm Snapdragon X50 5G chipset on Ericsson equipment to make the call during the inauguration of the TIM’s new 5G Innovation Hub in Rome.
The new TIM 5G Innovation Hub aims to attract and support an ecosystem of startups, research centers and other stakeholders interested in the digital transformation. In addition to the 5G video call, TIM also showcased a series of new services including a remote-driven car; a virtual museum tour, remote controlled industrial robots; and multiplayer interactive video gaming using augmented reality.
Mario Di Mauro, Chief Strategy, Innovation and Customer Experience Officer at TIM, said: “When we started to define the strategy and the development plans for 5G, we immediately realized that such a massive challenge could not be faced without the support of a wide range of partners committed to the same goal. We therefore proposed Qualcomm Technologies set up a place where work on the new 5G services and every business idea could find a quick realization thanks to the support of leading international technology players, innovative partners and start-ups from the local and national ecosystem.”
A German court ruled in favor of US chipmaker Qualcomm in a patent dispute case against Apple, which could lead to a ban on sales of iPhones in Germany. This marks a second major win for Qualcomm in a month after a court in China on December 10 ordered a prohibition on iPhone sales over a separate patent dispute there.
The chipmaker has won a preliminary injunction that would ban the sale and import of Apple’s recent iPhone models in China, including the iPhone 6S, 6S Plus, iPhone 7, 7 Plus, 8, 8 Plus, and iPhone X.
The court ruled that Apple is violating software patents held by Qualcomm that are specifically related to resizing pictures and managing applications.
Qualcomm has accused Apple of ‘stealing’ Qualcomm’s source code to share with rival modem supplier Intel, and that the American phone giant continues to benefit from their intellectual property while refusing to compensate them. It has spent the past year trying to ban iPhone sales in China.
Apple accuses Qualcomm of using its market dominance to unreasonably raise prices, commenting:
“Qualcomm’s effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world.”
Apple continues to sell the devices in China.
Verizon will launch its first 5G hotspot device to consumers in 2019, it has been announced. The American telecommunications company collaborated with Inseego and features Qualcomm’s Snapdragon 855 chip and Snapdragon X50 5G modem.
Qualcomm announced that the European Commission and the Korea Fair Trade Commission (KFTC) have authorized the acquisition of NXP Semiconductors. The acquisition has now received 8 of the 9 approvals around the world, with China remaining.
Telecom Review reported in November 2017 that Qualcomm’s acquisition of NXP was set to receive European Union approval, after the company said it would maintain licensing terms for NXP’s MIFARE technology, used in swipe cards for the London tube system. Qualcomm also said it would commit to ensure NXP chips remain interoperable.
Qualcomm said in a statement that it has cooperated with the European Commission and the KFTC and agreed to all conditions required by the agencies to obtain their authorization. Qualcomm committed to exclude certain near-field communication (NFC) patents from the proposed transaction and ensure that NXP licenses those patents to third parties.
Qualcomm also committed not to assert the NFC patents it will acquire from NXP and maintain interoperability between Qualcomm’s baseband chipsets and NXP’s NFC chips and rivals baseband chipsets and NFC chips. Qualcomm also confirmed it will continue to offer a license to MIFARE on terms commensurate with those offered by NXP.
“We are pleased that both the European Commission and the Korean Fair Trade Commission have granted authorization of the NXP acquisition, and we are optimistic that China will expeditiously grant its clearance,” said Steve Mollenkopf, CEO of Qualcomm Incorporated.
“Acquiring NXP is complementary to Qualcomm’s global portfolio, providing tremendous scale in automotive, IoT, security and networking and will greatly accelerate our ability to execute and create value in new and adjacent opportunities,” Mollenfopf added.
The European Commission expressed concerns in 2017 about Qualcomm's acquisition of NXP - announced in October 2016 - that the tie-up could lead to increased prices and reduced innovation in the semiconductor industry. Qualcomm offered in October 2017 concessions to move forward with the deal, but both Qualcomm and NXP warned that it could be delayed due to regulatory scrutiny.
However, winning EU and Korean approval is a big boost for the proposed merger. It is significant for Qualcomm in its bid to fend off acquisition advances from Broadcom, after the company rejected Broadcom's $130 billion offer.
According to Bloomberg analyst Anand Srinivasan, getting approval from the EU will be a relief for Qualcomm, as adding an automotive chip business in the form of NXP gives "it a much bigger and more diverse empire to oversee." Srinivasan believes the addition of NXP to Qualcomm's portfolio could see it convincing investors that Qualcomm has the right strategy to avoid Broadcom's advances.
Qualcomm announced on November 13 that its Board of Directors had "unanimously" rejected the unsolicited proposal by Broadcom on November 6. Paul Jacobs, Executive Chairman and Chairman of the Board of Qualcomm Incorporated, said the proposal "significantly undervalues Qualcomm" relative to its leadership in mobile technology and future growth prospects.
In a letter to stockholders ahead of its 2018 Annual Meeting of Stockholders to be held on March 6, Qualcomm highlighted details of a $1 billion strategy which aims to generate “significant value” for investors in the near term, in the wake of Broadcom making moves to acquire Qualcomm, which the company has labeled “opportunistic” and “aggressive”.
“Today we are executing a strategy that we are confident will continue to generate significant value for our stockholders in the near term with additional upside,” said the Qualcomm letter to stockholders. The company said it is committed to a $1 billion cost reduction program, and is also committed to creating value from its acquisition of NXP.
Qualcomm also said it expects to create value from resolving current licensing disputes, namely with Apple. “As is widely known, we are currently in litigation with Apple,” the letter reads. “What many stockholders do not realize is that we have binding long-term license agreements with Apple’s contract manufacturers. But Apple has required its contract manufacturers to cease paying us despite these existing binding contracts.”
Apple now continues to utilize Qualcomm’s intellectual property for its own profit without paying, the letter adds. “In this litigation, Apple is seeking to avoid paying fair value for Qualcomm’s intellectual property, rejecting terms that are well established in the industry. Apple has often used such litigation to try to renegotiate with its suppliers, and Qualcomm has taken legal action to enforce our contracts.”
Qualcomm also highlighted its leadership position in 5G, which is in the early stages of transforming multiple industries, including mobile, IoT, automotive and many others. This is why Broadcom’s acquisition bid was rejected, Qualcomm said, labeling it an “opportunistic” with a “highly uncertain – perhaps impossible – regulatory path to completion.”
The potential transaction would require clearance from at least a dozen antitrust regulators throughout the world, including the U.S., EU, China, Korea, Japan and others, as well as from national security agencies. Regulatory review would likely take at least 18 months to complete, and would likely require meaningful divestitures, ongoing restrictions on the combined entity’s conduct, potentially contradictory and irreconcilable demands from regulators, and the transaction could be blocked outright.
Qualcomm issued a statement on December 4 confirming the receipt of Broadcom’s nomination of a slate of candidates to replace Qualcomm’s existing Board of Directors at the company’s 2018 Annual Meeting of Stockholders. Qualcomm perceived the move as a “blatant attempt to seize control of the Qualcomm Board.”
Broadcom’s proposal was rejected by Qualcomm because it “dramatically undervalues Qualcomm and does not reflect our clear path to near term value,” the letter said. The move would also carry significant regulatory uncertainty, Qualcomm added, as well as giving “no value to the transformative opportunity in 5G.”
Qualcomm urges stakeholders in the letter to block Broadcom’s attempt to “capture, for itself, the value that rightly belongs” to investors. The company touted its position as 12-24 months ahead of its merchant competitors in the 5G space, as a result of “innovation and technological advancements.” A takeover by Broadcom, Qualcomm said, would bring “no value to the transformative 5G value creation opportunity that should play out as 5G is launched globally in 2019.”
Qualcomm’s strong position in 5G, coupled with its strength in connectivity, low power compute and security, has “positioned us for healthy long-term growth in areas such as mobile RF front end, IoT, automotive, computing and networking,” the letter adds. The opportunities, Qualcomm claims, represent a “serviceable addressable market” of $150 billion by 2020.
“We expect growth in these new areas to drive robust value creation for stockholders beyond 2019,” the letter reads. “We are demonstrating success in these areas with more than $3 billion in revenues in 2017, up 75% over the last two years.”
Continental, Ericsson, Nissan, NTT DOCOMO, OKI and Qualcomm Technologies, announced plans to carry out their first Cellular Vehicle-to-Everything (C-V2X) trials in Japan. The objective is to validate and demonstrate the benefits of C-V2X using direct communication technology defined by the 3rd Generation Partnership Project (3GPP) in their Release 14 specifications.
The trials are designed to show the enhanced range reliability and latency benefits of C-V2X direct communications operated in 5GHz band. Additionally, the C-V2X trials are designed to demonstrate the complementary benefits of network-based communications utilizing LTE-Advanced (LTE-A).
The trial results will help develop the ecosystem by providing inputs to the relevant stakeholders, including ITS-related organizations and government agencies, as we prepare for the connected car of the future and the industry’s evolutionary transition towards 5G New Radio (NR), the new global cellular standard being defined in 3GPP.
While complementing other Advanced Driver Assistance System (ADAS) sensors, such as radar, lidar, and camera systems, C-V2X provides non-line-of-sight (NLOS) low latency awareness with longer range and cloud capabilities, and is designed to extend a vehicle’s ability to see, hear and communicate further down the road, even at blind intersections.
C-V2X radio technology, a state-of-the-art cellular technology, is being validated for global deployments, and leverages the upper layer protocols developed by the automotive industry over years of research to support new advanced end-to-end use cases. C-V2X direct communications provide enhanced range and reliability without relying on cellular network assistance or coverage.
Preparation work is well underway with the trial expected to begin in 2018 and the use cases are designed to focus on Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I) and Vehicle-to-Pedestrian (V2P) direct communications, as well as Vehicle-to-Network (V2N) operations over cellular network-based wide area communications with cloud access.
For the field trials, Continental will utilize the Qualcomm® C-V2X Reference Design, which features the Qualcomm® 9150 C-V2X chipset with integrated Global Navigation Satellite System (GNSS) capability to build connected car systems and integrate the systems into Nissan vehicles.
Nissan will perform V2X use case selection and develop test scenarios with key performance indicators (KPIs) for C-V2X technology validation. OKI, one of the leading companies in ITS, will bring their expertise in roadside unit (RSU) infrastructure and applications to demonstrate V2I as a viable technology for advanced traffic applications by integrating the Qualcomm® 9150 C-V2X chipset into their RSU.
Ericsson will join the V2N use case discussion, considering a combination of direct communication and LTE-A network technologies. NTT DOCOMO will provide an LTE-A network and V2N applications to demonstrate the benefits of complementary use of network-based communications for a variety of advanced automotive informational safety use cases.
“We are pleased to be working alongside such a dynamic group of forward-thinking companies to demonstrate the capabilities of C-V2X technology in the first announced Japanese trials,” said Nakul Duggal, vice president of product management, Qualcomm Technologies. “With its direct communications capabilities, C-V2X is ideally suited to be an important factor in facilitating enhanced safety consciousness and driver assistance. This Japan trial is a milestone in the global deployment of C-V2X technology which is expected to be featured in production vehicles by 2020.”