Qualcomm Inc on Tuesday won a major victory in its wide-ranging legal dispute wi...
- Qualcomm Inc on Tuesday won a major victory in its wide-ranging legal dispute with Apple Inc as the companies reached a surprise settlement that called for the iPhone to once again use Qualcomm modem chips.
Because Qualcomm is already shipping 5G chips while Intel was still developing them, the deal helps Apple in its battle with Samsung Electronics Co Ltd and other manufacturers whose phones already work on the faster networks. “Intel isn’t trading lower because modems represent such a small portion of revenues for the company,” said Patrick Moorhead of Moor Insights & Strategy.
Intel’s exit from the modem business does not necessarily mean Qualcomm will become Apple’s sole supplier. Apple executives testified in January at a trial between the U.S. Federal Trade Commission and Qualcomm that Apple’s policy is always seek several suppliers. Analysts were also unsure whether Apple’s a onetime payment under the deal represented unpaid royalties from the past two years or a down payment on future royalties.
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