Intel Exiting 5G Smartphone Modem Business, Won't Make 5G iPhone Chips at All

[PickUrPoison]

Likewise my friend, likewise

It’s always good to consider the source. In this case, the statement by Qualcomm’s President directly contradicted the rumor reported by the Taiwanese trade publication.

And if the veracity of Qualcomm’s President’s statement that they were willing to sell Apple chips was at all questionable, the agreement signed yesterday removes all doubt: the rumor reported in the Electronic Times that Qualcomm was unwilling to sell their chips to Apple was 100% incorrect. (I’m pretty sure it’s more reliable than Digitimes, however )

 

[BootsWalking]

"If you read our last piece on the suits it was pretty obvious that Apple was in the wrong, allegedly caught red handed, and dug the hole deeper with their petty and vindictive reactions. Qualcomm claims to have multiple emails where Apple gave sensitive trade secrets to a competitor, then refused to allow Qualcomm to exercise their contractual audit rights. While there may be some more evidence not presented publicly, it sure looks like Apple was in the wrong."

https://www.semiaccurate.com/2019/04/16/qualcomm-just-beat-apple-into-sumbission/

 

[kaikai830]

It’s always good to consider the source. In this case, the statement by Qualcomm’s President directly contradicted the rumor reported by the Taiwanese trade publication.

And if the veracity of Qualcomm’s President’s statement that they were willing to sell Apple chips was at all questionable, the agreement signed yesterday removes all doubt: the rumor reported in the Electronic Times that Qualcomm was unwilling to sell their chips to Apple was 100% incorrect. (I’m pretty sure it’s more reliable than Digitimes, however )

So didn't you said Apple didn't need Qualcomm, they can wait it out or source it to a different supplier? Why did they agreed to pay Qualcomm and settle then? BTW I'm done. Thanks

 

[Radon87000]

Conjectures are fun. Or got some proof? It’s more than likely both caved.

Yes. Intel failed at their 5G modems and Apple had to grit their teeth in anger and bow to the superior Qualcomm and pay all their dues.

Qualcomm like Samsung is in a unique position to boss Apple around.
[doublepost=1555509545][/doublepost]

Do you think Qualcomm was going to turn down billions in revenue? Do you think they had Apple in a figurative headlock? If you say yes, I would say you are missing a piece of the puzzle. Both sides gave up something. What that something is we will likely never know.

Qualcomm never had anything to turn down. They are the monopoly in cellular modems. They threw down the gauntlet knowing Apple us no choice in the matter. This is why Qualcomm share is up while AAPL hasn’t moveed.

 

[FFR]

Yes. Intel failed at their 5G modems and Apple had to grit their teeth in anger and bow to the superior Qualcomm and pay all their dues.

Qualcomm like Samsung is in a unique position to boss Apple around.
[doublepost=1555509545][/doublepost]
Qualcomm never had anything to turn down. They are the monopoly in cellular modems. They threw down the gauntlet knowing Apple us no choice in the matter. This is why Qualcomm share is up while AAPL hasn’t moveed.

None of the reasons present by you actually stopped you from buying an iPhone with an intel modem.

Does that mean you bowed down to apple?

 

[Ronlap]

Or the results Intel choked out prompted Apple’s deal.

Also remember that Apple throttled Qualcomm chips so that their Intel-chip phones wouldn't be left behind:

https://appleinsider.com/articles/1...em-to-keep-performance-on-par-with-intel-chip

 

[mi7chy]

Apple would be smart to make their own chips they have the technology.

After they figure out AirPower.

 

[unplugme71]

I get the sense Apples deal with Qualcomm was not the result Intel was looking for.

One would assume. Probably hurt their feelings considering the big push they did for Apple back in 2005/2006 (?)
[doublepost=1555511172][/doublepost]

Sounds like Qualcomm caved, they have been hurting for apple's lost revenue.

That and they didn’t want to give business to Intel. It’s hard to get business back - especially if your competitor is even just close to being as good as you.

 

[springsup]

This is very disappointing. We need competition in the 5G baseband market.

Dropping 5G means this isn't going to be a big, profit-making business unit for Intel. They may have some valuable IP and engineering talent, though. That makes an outright sale most likely.

Apple would be the most obvious buyer, but maybe not the only one. It's possible that Apple just want more options to buy chips from. They could be happy to let another company (like Softbank-owned ARM) buy the unit to achieve that. Intel will investigate those options to see which ones provides maximum value for its own shareholders.

 

[PickUrPoison]

I'm ready to acknowledge valid arguments but I haven't seen anything like that from you.
And why am I a hater? Because I'm fair and you don't like what I write?

The logic is as it follows:

The best case for Apple would have been
-To win the trial in the US against Qualcomm(many users here act like it was sure thing anyway so why give it up?). Prove that they were right.
-According to you, they had various other options for 5G anyway(Intel, only later, or Smasung) and Apple is also "willing to wait" so it's not a problem.
-Completely cut Qualcomm as a potential chip supplier for ever(they have no need for Qualcomm anyway nooo?)

What happens was:

-The trial was dropped
-Apple signed a 6 years contract with Qualcomm(and Apple is the one paying money to Qualcomm) and will want to get from them 5G modems as soon as possible.

So it doesn't look like things happened like Apple would have hopped.

Why are you a hater? Good question! I have no idea. But you make post after post, month after month, of nothing but negativity towards Apple. Apparently you enjoy trolling on an Apple-centric site.

Be that as it may, here’s Apple’s best case:
1) They don’t have to pay the double-dipping license fees that Qualcomm is clearly not entitled to, yet is able to extract from most customers because they bully them with “no license, no chips”. Most customers have no alternative but to sign and pay.

Antitrust actions around the world and here in the US are taking care of this problem for others, and Apple agreeing to drop its suit against Qualcomm has solved it for Apple.

2. Apple agrees to pay the appropriate FRAND rates to Qualcomm, past and future, including for the unpaid past royalties that Apple was holding back.

3. Apple receives credit for the rebate being withheld by Qualcomm of about $1 billion against amounts owed to Qualcomm for royalties

4. Apple locks in license terms that are acceptable to them for the next 6-8 years.

5. Until they make their own, Apple gets a guaranteed supply of baseband chips at acceptable prices without having to use multiple suppliers (which is especially difficult in this situation) to gain leverage.

6. Qualcomm drops all legal action against Apple and its suppliers.

7. Apple drops all legal actions against Qualcomm.


I’m sure you won’t agree, but I think all these terms were part of this deal.

You may think it important, but Apple has no interest in “proving they were right”. They just wanted a good deal on a needed component—and they got it. The trial turned out not to be necessary for Apple to get what they wanted, and they were happy to settle instead.

 

[I7guy]

Yes. Intel failed at their 5G modems and Apple had to grit their teeth in anger and bow to the superior Qualcomm and pay all their dues.

Qualcomm like Samsung is in a unique position to boss Apple around.

Yes, it’s a good opinion but an unverifiable fact.

Qualcomm never had anything to turn down. They are the monopoly in cellular modems. They threw down the gauntlet knowing Apple us no choice in the matter. This is why Qualcomm share is up while AAPL hasn’t moveed.

It’s incredibly naive to believe both sides gave up something. Apple probably payed and Qualcomm probably lowered their rates.

 

[jonnysods]

Qualcomm stocks are going to go out of control!!!

 

[FFR]

Why are you a hater? Good question! I have no idea. But you make post after post, month after month, of nothing but negativity towards Apple. Apparently you enjoy trolling on an Apple-centric site.

Be that as it may, here’s Apple’s best case:
1) They don’t have to pay the double-dipping license fees that Qualcomm is clearly not entitled to, yet is able to extract from most customers because they bully them with “no license, no chips”. Most customers have no alternative but to sign and pay.

Antitrust actions around the world and here in the US are taking care of this problem for others, and Apple agreeing to drop its suit against Qualcomm has solved it for Apple.

2. Apple agrees to pay the appropriate FRAND rates to Qualcomm, past and future, including for the unpaid past royalties that Apple was holding back.

3. Apple receives credit for the rebate being withheld by Qualcomm of about $1 billion against amounts owed to Qualcomm for royalties

4. Apple locks in license terms that are acceptable to them for the next 6-8 years.

5. Until they make their own, Apple gets a guaranteed supply of baseband chips at acceptable prices without having to use multiple suppliers (which is especially difficult in this situation) to gain leverage.

6. Qualcomm drops all legal action against Apple and its suppliers.

7. Apple drops all legal actions against Qualcomm.


I’m sure you won’t agree, but I think all these terms were part of this deal.

You may think it important, but Apple has no interest in “proving they were right”. They just wanted a good deal on a needed component—and they got it. The trial turned out not to be necessary for Apple to get what they wanted, and they were happy to settle instead.

That posters has absolutely no interest in purchasing an iPhone, even now that apple will be using a Qualcomm 5g modem next year. His views on apple and iPhones won’t change.

 

[kemal]

Anyone interested in a 2019 iPhone with intel modem? Well, maybe if they do away with the notch.

 

[Sabelonada]

Intel is behind in a lot of areas when it comes to consumers. Soon enough, Apple will begin using their own chips and the rest of the industry will move to a similar processor. If you need to constantly be tethered to the wall using an Intel processor, you won’t be part of the future. Time for them to transition, similar to what Microsoft did.

Not everything can be done from an iPad Pro.

 

[Tinmania]

This answers many unanswered questions. Didn’t see this coming.

Thankfully you won't be seeing "Intel Inside" either.



Mike

 

[realtuner]

Qualcomm played their cards really nicely. I don't think they were worried about their chances of losing vs Apple.
Taking in consideration articles like this: https://semiaccurate.com/2018/11/12/intel-tries-to-pretend-they-have-5g-silicon-with-the-xmm-8160/ , I would say Qualcomm was most likely aware about Intel's progress with 5G and knew Apple won't be able to wait for ever.

Quoting semiaccurate? What’s next, relying on Fox News for processor analysis? And I see a few others have also quoted them - no surprise. Apple bashers always seem to attract clicks and semiaccurate has climbed the search results by posting an obviously biased article bashing Apple with no basis in fact.

It only takes a few minutes browsing their site to see all the BS they spew.

For example, they cover Qualcomm SoCs with numerous long articles extolling praises on all their incredible features. They do the same for Samsung Exynos and also for ARM processor cores (that others like Samsung and Qualcomm use). Apple processors? Nothing. Not only are there no articles on Apple SoCs (which is odd, as you'd expect a blog that talks about processors to do a write-up on the most advanced mobile processors available), but they don't even bother mentioning Apple SoCs in comparison along with other SoCs.

That tells me all I need to know about this "shill" site. Even the most hardcore Android websites talk about Apple processors and compare them to Exynos/Snapdragon.

 

[Sabelonada]

YESSSSSSS!!!!!

No more capping Qualcomm chips performance because of mixed Qualcomm/Intel supply.

Now I am all the more convinced that I won’t be getting a new iPhone before the 2020 edition.

I hate Intel silicon...

Do you not buy any Mac products then?

 

[StralyanPithecus]

Qualcomm didn’t caved at all. It’s time some people start to understand that the world doesn’t move around Apple, here in the US Apple is a big player, I know, but outside US it fades away and phones and tables kingdom belongs to Android. Intel wasn’t interested at all about dealing with phone modems, the profits in this field are low and Intel has enough high profit items in production. Apple started to ask for more and more from Intel (hey, I will do the same if I was Apple), Intel stopped them and Apple was forced to look at Qualcomm again, the rest is history. Apple get fast access to 5G, pays for it (they have enough money, so no worries about it) and everyone is happy... well no, some people here a MR seems not so happy.

 

[PickUrPoison]

So didn't you said Apple didn't need Qualcomm, they can wait it out or source it to a different supplier? Why did they agreed to pay Qualcomm and settle then? BTW I'm done. Thanks

They paid Qualcomm because they owed them money. Exactly how much they owed was in dispute and was the subject of this trial.

They settled because they were able to negotiate matters that would have been decided at this trial (more favorably or less favorably than the settlement, you never know what a jury may do) as well as many other pending matters in courts all around the world at terms that were acceptable to them. They also solved their Intel problem and guaranteed supply of a necessary component. And I have no doubt they preferred the Qualcomm chip over the Intel chip

 

[JPack]

This case is about money and technology. Apple had the money but not the tech. Qualcomm has the tech and clearly survived without Apple’s money. It was simply a matter of time before Tim was forced to pick up the phone.

 

[The Oak]

So, Intel is going to focus on 5G for servers and laptops ... okay.

In 6 years however, when this Qualcomm deal is set to expire ... and 6G is on the horizon ...

Intel at that time would have figured out its 5G modem ...

It will start all over.

 

[DNichter]

Not everything can be done from an iPad Pro.

Correct. There were always be a niche of users that still rely on a traditional computer, just like today. For enterprise, I think that will always be the primary method, but consumers have already moved on.

 

[JPack]

It’s incredibly naive to believe both sides gave up something. Apple probably payed and Qualcomm probably lowered their rates.

It's even more naive to believe both Qualcomm and Apple had equally strong cases.

Apple couldn't survive without 5G. Qualcomm survived without Apple's money and had 5G.

The press release says it all. Apple wasn't even allowed to get in a comment, not even in their own press release.

 

[DNichter]

Who cares who caved? They likely both conceded a bit when it comes to money and it's a win for consumers. People arguing over this are ridiculous.