If the smartphone is an integral part of everyone’s life today, well, then the CPU is an integral part of every phone. And that CPU deals could worth billions!
Apple and Qualcomm Finally Ends their Dispute with $6billion Settlement!
Settling the long term dispute between Qualcomm (CPU maker) and Apple, on Tuesday, both the companies have undergone an undisclosed agreement, touting to be worth 5-6billion.
This all started when Qualcomm started charging high royalties for their chips usage and asking for a share in iPhone sales.
Apple started filing cases against Qualcomm in the U.S, China and the U.K. To which, Qualcomm reverted with cases in Germany and China. All these are worth billions of fines and stood for a long time time.
At one point, Qualcomm even had Apple to shut down its stores in Germany! But reopened later only after agreeing to use Qualcomm’s chips instead of Intel in iPhone 7, 8 and X models selling in Germany.
But now, after some bitter times, both the companies resolved the issue with Apple paying around $5-6billion to Qualcomm and agreements for using their chips for future years (analysts estimates).
Of course, Apple should be surrendered. If not now, maybe tomorrow, as it has no other viable choice to make.
Racing in 5G space, Apple said to launch 5G enabled iPhones late by 2020. That’s a way too long on comparing to Androids, as OEMs like Huawei, Â Samsung and have already positioned their devices in the market and excel.
On the other hand, Apple’s chip maker Intel, who are supplying 4G SoCs for iPhones in between Qualcomm’s dispute, has announced their ditching of 5G makings on Tuesday.
CEO Bob Swan said, “It has become apparent that there is no clear path to profitability and positive returns.”
With Intel’s exit, Apple has no other means of sourcing 5G modems other than Qualcomm’s. Samsung and Huawei are the other two major 5G makers, but wouldn’t be supplying to their rival.
As a result, Apple has it’s knee bent to Qualcomm finally!
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