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Qualcomm Accuses Apple of Helping Intel Using Qualcomm Software

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Apr 12, 2001
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Qualcomm on Wednesday filed yet another lawsuit against Apple, this time accusing the company of breaching software licensing terms and using Qualcomm code to help Intel, reports Bloomberg.

According to Qualcomm, Apple breached a contract that dictates the use of software that's designed to make Qualcomm chips work with other iPhone components. Qualcomm also believes Apple may have used its access to that software to help Intel with its own modem chip development.


Since 2016, Apple has been using LTE chips from both Intel and Qualcomm in an effort to diversify its supply chain and move some production away from Qualcomm. The iPhone 7, 7 Plus, 8, and 8 Plus all use a mix of Qualcomm and Intel chips.

In light of the ongoing legal battle with Qualcomm, Apple is said to be considering eliminating Qualcomm chips from its devices all together, instead adopting chips from Intel and possibly MediaTek. Rumors suggest Qualcomm has been withholding software from Apple that Apple needs to test prototype devices for next year, forcing Apple's hand.

Qualcomm and Apple have been involved in an escalating legal fight since the beginning of the year after Apple sued Qualcomm for $1 billion. Apple has accused Qualcomm of charging unfair royalties for "technologies they have nothing to do with" and failing to pay for quarterly rebates.

Apple has since stopped paying royalties to Qualcomm until new licensing fees have been worked out, as have Apple suppliers, significantly impacting Qualcomm's profits.

Qualcomm has since levied several lawsuits against Apple, accusing the company of patent infringement and asking both the United States and China to block imports and exports of some iPhone models.

Article Link: Qualcomm Accuses Apple of Helping Intel Using Qualcomm Software
 
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Alan Wynn

macrumors 65816
Sep 13, 2017
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Meanwhile... Qualcomm stock reaches all time high in shadow of 90% drop in revenues.

When this is all over, they will get a big infusion of cash from back payments. How much that will be is yet to be determined. The continuing escalation is fascinating. I wonder how much it stands to lose if Apple does decide to build their own modem chip (ideally integrated in a future Ax SoC). Patent licensing is their largest revenue source, but losing the chip revenue would not be good.
 
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tito2020

macrumors 6502a
Oct 16, 2011
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samsung trial looks good comparing to this fiasco, apple should had stood with sammy or sharp
 
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sdf

macrumors 6502
Jan 29, 2004
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When this is all over, they will get a big infusion of cash from back payments. How much that will be is yet to be determined. The continuing escalation is fascinating. I wonder how much it stands to lose if Apple does decide to build their own modem chip (ideally integrated in a future Ax SoC). Patent licensing is their largest revenue source, but losing the chip revenue would not be good.

They'll get a big cash infusion and some of their revenue will resume, but I'm sure it'll be very much reduced. There are so many points of articulation here; it seems impossible to predict how much this'll hurt Qualcomm overall in the long term.

It's really quite fascinating!
 
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tkukoc

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Sep 16, 2014
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When this is all over, they will get a big infusion of cash from back payments. How much that will be is yet to be determined. The continuing escalation is fascinating. I wonder how much it stands to lose if Apple does decide to build their own modem chip (ideally integrated in a future Ax SoC). Patent licensing is their largest revenue source, but losing the chip revenue would not be good.
It's over for these guys and they have got to be realizing that. I'd say Apple has been working on their own chips already. Once released, GAME OVER MAN, GAME OVER!
 
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haunebu

macrumors regular
Jun 2, 2004
138
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Qualcomm's IP assets and legal team are one of the few that could very well win against Apple. They invented a huge proportion of the technology used this space. If Apple really did provide Intel, Qualcomm's direct competitor, with Qualcomm's IP, it's a complete disaster for Apple.

At this point, the whole thing seems to have become intensely personal for some executive team member(s) at Apple. Do they really care about just a few dollars per iPhone? Enough to completely remove what are indisputably the world's best mobile chipsets from their supply chain? Doesn't make any business sense.
 
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keysofanxiety

macrumors G3
Nov 23, 2011
9,534
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It's over for these guys and they have got to be realizing that. I'd say Apple has been working on their own chips already. Once released, GAME OVER MAN, GAME OVER!

Argh, how could you possibly make an Aliens reference and not expect me to upvote. :mad:
 
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