Apple, looking ahead to life without Qualcomm, designs 2018 models for Intel and MediaTek modem chips
by Alan Friedman / Oct 30, 2017, 9:11 PM
Apple has always used Qualcomm's modem chips exclusively in the iPhone until last year, when it was supplied by both Qualcomm and Intel. Because the Qualcomm chip (used on the CDMA enabled devices) was much faster, Apple was forced to throttle its speed so that one version of the phone wasn't running much faster than the other (GSM).
Would Apple give up a modem chip that analysts say outperforms the competition just to teach Qualcomm a lesson? The latter owns 50% of the market for modem chips with MediaTek controlling 25% and Intel 6%. Last year, Apple bought 20% of Qualcomm's modem chips amounting to $3.2 billion in purchases. This year, reflecting Apple's decision to add Intel to the mix, that figure is expected to drop to $2.1 billion or 13% of Qualcomm's modem chip revenue.
Another thing to consider is that Qualcomm is considered to be way ahead of its rivals in designing chips for the upcoming 5G standard. The first 5G iPhone could be offered by 2019. Perhaps this is why Qualcomm CEO Steve Mollenkopf recently said that he was optimistic that Qualcomm and Apple would reconcile.
Apple has claimed that Qualcomm failed to pay it $1 billion in royalty rebates that it claims it is due, while the chip designer says that Apple has told the contract manufacturers that it uses to assemble the iPhone and iPad, not to pay royalties to Qualcomm. The latter is also accused of refusing to license its standard essential patents in a fair, reasonable and non-discriminatory manner.
Posts: 1409; Member since: Oct 24, 2016
Apple should stick to Samsung in everything, if want to survive.
posted on Oct 30, 2017, 9:46 PM 1
Posts: 3951; Member since: Oct 03, 2015
Qualcomm makes the best modems, even samsung uses them along with Qualcomm's SOCs. As for surviving, I don't think Apple or Samsung are going anywhere anytime soon.
posted on Oct 30, 2017, 9:58 PM 4
Posts: 346; Member since: May 21, 2013
in term of sales, Samsung mobile division is the largest division in Samsung electronic. And its the most important division of samsung group because it tied closely with semi and display division (samsung mobile source chip and panel from display and semi division)
posted on Oct 31, 2017, 6:29 AM 0
Posts: 5868; Member since: May 06, 2016
" along with Qualcomm's SOCs" Samsung uses Qualcomm's SoCs because of the CDMA tech, since using the Snapdragon SoC is cheaper than building your own modem and pay royalties... Though Samsung did just that (paid royalties to Qualcomm foCDMA patents?) in the Exynos 7420 because the Snapdragon 810 was an overheating mess. I'll take the Exynos over the Snapdragon any day.
posted on Oct 31, 2017, 12:26 AM 2
Posts: 1050; Member since: Sep 20, 2017
So Apple is like. We dont want to pay for the best stuff, we will just go elsewhere. Lets see if Intel and MediaTek can yield as much as Qualcomm has. They used an dont wanna pay and now they are gonna drop them. Another move thats gonna cause issues. They will be crawling back to QC, just like they went back to Samsung.
posted on Oct 30, 2017, 10:25 PM 1
Posts: 981; Member since: Jul 07, 2014
If you actually read the statements, Apple doesn't want to use it because Qualcomm wants double royalties. It asks royalties from the fabrics and also from the phone makers that use qualcomm parts. I'm an android guy but Qualcomm is one of the dirtiest companies that exist right now.
posted on Oct 31, 2017, 4:57 AM 0
Posts: 1560; Member since: Jul 12, 2016
So Apple will have slower data speeds than the competition, for the most part mobile networks are too congested and slow to notice the difference anyway.
posted on Oct 30, 2017, 11:39 PM 1
Posts: 160; Member since: Jun 16, 2017
Even if Apple stops using QC modems they'd stil have bumper sales because of loyalists. Qualcomm is the only one who can get hurt in this even with their "way ahead of others" 5G dev
posted on Oct 31, 2017, 5:37 AM 0
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