In the last hours, it was announced that Apple tried to implement Qualcomm modems in the new iPhone XS and XR. And that the latter refused to sell them. This fact has been witnessed through the head of operations of Apple, Jeff Williams. He also reported that the modems implanted in these devices are from Intel.
They continue to uncover more truths between Qualcomm and Apple
It is true that among the present technology companies there are legal disputes and lawsuits. But Apple has tried to reconcile things in some way. Proof of this are the statements that Jeff Williams has expressed before the Federal Trade Commission of the United States.
We could not get them to support us in new designs (…) beyond that time (the demand). The strategy was to use a dual source in 2018. We were working to do it with Qualcomm. But in the end they did not support us or sell us the chips.
Qualcomm would have been part of the assembly of the previous line of devices (iPhone 8 and iPhone X) of Apple. Since modems were supplied 50% of both companies, Intel and Qualcomm. In this case, Williams went before the CEO of Qualcomm, Steve Mollenkopf to establish a rational agreement. That did not happen.
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Then, they questioned the head of operations of Apple with the following: Why did the working relationship continue after the disadvantages of tariffs in the subsequent licenses and controversies?
We contemplate an increase of 1000 million dollars per year in licenses (..). We needed the supply of modems. Even trying to find them legally, there was no option to access them.
The demand takes time on the table
Between 2011 and 2016, it was the time (supposedly) that “compelled” Qualcomm to Apple to implement modems on their mobile devices. That was in exchange for lower royalties in terms of patents. This is how the story of Apple’s demand for Qualcomm began. It was backed by the US Federal Trade Commission.
Qualcomm has been guilty of millions in fines for failing to follow the FRAND price policies (fair, reasonable and non-discriminatory). When Qualcomm is sanctioned for these reasons, Apple has taken the opportunity to sue for other reasons. That includes reimbursements in retaliation for cooperating with antitrust investigators.
To reduce fines, Qualcomm invested 700 million dollars in Taiwan. But that attempt led to receiving another fine millionaire by the European Union. For Apple, he has been accused of patent violations. Also, of giving trade secrets to Intel. Qualcomm has won part of the Apple market by banning limited sales of the iPhone in China and Germany. At least, sales only affect older devices. Qualcomm bets for this prohibition in the USA.
The testimonial stage has not yet concluded. So we could expect more evidence to assume the fault of one or both parties. The legal shocks, that have both Apple and Qualcomm, have their finances are attacked. Not only for the millionaire loss in fines, but in the case of Apple everything is kept in uncertainty by the future sales of the iPhone. And in the case of Qualcomm, to no longer have those privileges of continuing to implement technology in one of the most profitable technology companies in recent years.
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