Turbotodd

Ruminations on tech, the digital media, and some golf thrown in for good measure.

Archive for the ‘qualcomm’ Category

When the Chips Are Down

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We now know more about the Apple/Qualcomm settlement.

It was all (or mostly) about 5G.

No sooner was the settlement announced that Intel announced it was pulling out of the 5G smartphone chip market.

Apple and Qualcomm’s six-year licensing agreement will help ensure the launch of the first 5G iPhone in 2020.

According to a report from Nikkei Asian Review, the settlement included an undisclosed payment to Qualcomm by Apple, which "several weeks ago asked its suppliers to begin testing the chipmaker’s 5G modems."

Intel told Nikkei Asian in a statement that there was "no clear path to profitability and positive returns in the smartphone little business. That said, 5G remains a strategic priority across Intel and we continue to invest in our 5G network infrastructure business."

Apparently, Apple had long been concerned that Intel could not meet its 5G schedule, likely prompting the settlement with Qualcomm.

Nikkei Asian notes that Intel had been the sole modem chip supplier for iPhones since 2018, which, ironically, were due to Apple’s legal dispute with Qualcomm

What to do when the chips are down?!

Written by turbotodd

April 17, 2019 at 10:30 am

Apple, Qualcomm Settle

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Well I certainly didn’t see that one coming!

CNBC is reporting the Apple and Qualcomm has settled their royalty and patent dispute that was going to trial in San Diego this week.

According to the report, as part of the settlement all legal action worldwide between the two companies will be dropped, and Qualcomm said it expected a $2 increase in earnings per share as its stock rose over 15% on the announcement.

Apple shares were up less than 1%.

The trial started yesterday and was expected to last until May, according to the report from CNBC, and both sides were asking for billions in damages.

Their legal battle centered around modem chips and had been going on since 2016.

Apple had bought those chips from Qualcomm for years, but “chafed under Qualcomm’s prices and requirement that any company using its chips would also pay licensing fees for its patents.”

Here’s the lede from the Apple press release:

Qualcomm and Apple today announced an agreement to dismiss all litigation between the two companies worldwide. The settlement includes a payment from Apple to Qualcomm. The companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement.

Written by turbotodd

April 16, 2019 at 2:37 pm

Qualcomm’s $1.2B Fine for Apple Chip Exclusivity

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Top IT headline for this fine Humpday morning:

“EU fines Qualcomm €997M for abusing market dominance, says it paid Apple to buy LTE baseband chipsets from Qualcomm exclusively; Qualcomm to appeal.”

That from the EU press room.

Bloomberg writes that “Apple was cornered by Qualcomm with a 2011 deal that offered ‘significant’ sums and rebates if it only bought the company’s chips,” according to an EU mailed statement.

“Apple was seriously thinking of switching” from Qualcomm to Intel chips “which would have made a big difference to Intel” but couldn’t do so until its Qualcomm pact was about to expire in September 2016, EU Competition Commissioner Margrethe Vestager told reporters at a Brussels press conference.
– via Bloomberg.com

The antitrust fine, the EU’s third highest, comes as Qualcomm tries to fend off a $105 billion hostile takeover by rival Broadcom Ltd. and wages war with Apple in numerous court cases around the world over patent licensing. Qualcomm’s management is under pressure to show shareholders it can manage the Apple dispute and battles with regulators that have already led to fines in China and South Korea.
– via Bloomberg.com

 

So far, the market is shrugging the fine off, with Qualcomm shares just slightly down overnight.

Written by turbotodd

January 24, 2018 at 9:27 am

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