Chipmaker reigns supreme, at least until iGiant gets its house in order
hinted that the iPhone maker is more focused on strengthening its supply chains, saying the company faces"increased challenges" in China and is seeking to increase its supply of components from elsewhere."Qualcomm has probably leveraged their market position and Apple's lack of alternatives to reach a commercial agreement like this. Big win for Qualcomm," commented Cadenas.
However, the terms of the contract were not made public. According to a brief presentation on its investor site, Qualcomm said they are similar to the deal it struck with Apple in 2019, when the companyThat legal action involved claims that Qualcomm was abusing its market dominance to charge too much in royalties for cellular technology, and saw Apple briefly switch to using modem silicon from Intel in protest.
The two companies settled all their licensing disagreements out of court and signed a new deal for Apple to use Qualcomm chips in iPhones. The loss of Apple as a customer pulled the rug from under Intel's 5G modem efforts, and led to Applethe majority of Intel's smartphone modem business shortly afterwards in a transaction valued at $1 billion.
Ironically, that move gave Apple the resources it needed to develop its own modem chip designs, although it appears to be taking longer than the outfit expected. We asked Apple for comment, and will update if we hear back. ®
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