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Qualcomm CEO Steve Mollenkopf Shares Thoughts on Apple Deal but Declines to Give Specific Details

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Following yesterday's surprise announcement of a settlement between Qualcomm and Apple, Qualcomm CEO Steve Mollenkopf sat down with CNBC to share a few more details about the new agreement between the two companies.

According to Mollenkopf, after "a lot of talking" both between teams and with Apple CEO Tim Cook, Apple and Qualcomm came to an agreement that "both companies like." Qualcomm and Apple are now focusing on getting new products out, such as the 5G iPhone coming in 2020 that Qualcomm will supply chips for.

qualcomm-iphones-800x430.jpg
And really, if you look at the focus of that energy now, it's very much on, 'Let's get these products out.' You know, it really clears the way for, I think, a much more natural relationship between the two companies. One that we certainly enjoy working on products together. And that's what we're doing now.
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Apple and Qualcomm have established a "very broad deal" across all of Qualcomm's technologies, which Mollenkopf says is the first direct license that Qualcomm has had with Apple rather than contract manufacturers.

Each side "found something that was useful" in the deal, and according to Mollenkopf, Apple and Qualcomm "want to work together on products," as evidenced by the multiyear product deal the two signed as part of the settlement.

Part of the agreement between the two companies included a payment from Apple to Qualcomm, but Mollenkopf declined to provide further details on the size of the payment. He also refused to reveal how much Apple is paying Qualcomm per phone.

On the topic of 5G chips for future iPhones, Mollenkopf said that Qualcomm is "excited" and has the "entire team" working to support Apple. Unsurprisingly, no details were given on Apple's product plans or launch timelines for 5G connectivity.

While Apple settled with Qualcomm, Qualcomm continues to face an FTC inquiry into anticompetitive business tactics, which Mollenkopf says is still a risk to Qualcomm. He doesn't believe the Apple decision will impact what the FTC decides.
I don't think so. I think when we look at this deal, we're just happy to be able to do it. The environment with which we were able to put the deal together is obviously right in the middle of a trial. But, you know, the court is going to make its decision.
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Mollenkopf's full interview, which includes additional details about Qualcomm's relationship with Apple and Qualcomm's goals moving forward, can be watched on CNBC's website.

Article Link: Qualcomm CEO Steve Mollenkopf Shares Thoughts on Apple Deal but Declines to Give Specific Details
 
Article Link
https://www.macrumors.com/2019/04/17/qualcomm-ceo-apple-deal-interview/
It’s a win win win
Win for Apple to power their product
Win for Qualcomm in essentially guaranteed revenue
Win for the consumer.

Intel was later to the game and wasn’t able to provide the bit for bit quality and performance.
 
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bruinsrme said:
It’s a win win win
Win for Apple to power their product
Win for Qualcomm in essentially guaranteed revue
Win for the consumer. Intel was later to the game and wasn’t able to provide the bit for bit quality and performance.
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How is it a win for Intel? lol
 
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We need to get Steve Mollenkopf on here for AMA. People want to know if Intel suddenly dropped out of the mobile business since they were faced with impending antitrust case colluding with Apple to stifle Qualcomm and if Qualcomm/FTC will continue to pursue that.
 
MacRumors said:



Following yesterday's surprise announcement of a settlement between Qualcomm and Apple, Qualcomm CEO Steve Mollenkopf sat down with CNBC to share a few more details about the new agreement between the two companies.

According to Mollenkopf, after "a lot of talking" both between teams and with Apple CEO Tim Cook, Apple and Qualcomm came to an agreement that "both companies like." Qualcomm and Apple are now focusing on getting new products out, such as the 5G iPhone coming in 2020 that Qualcomm will supply chips for.

qualcomm-iphones-800x430.jpg
Apple and Qualcomm have established a "very broad deal" across all of Qualcomm's technologies, which Mollenkopf says is the first direct license that Qualcomm has had with Apple rather than contract manufacturers.

Each side "found something that was useful" in the deal, and according to Mollenkopf, Apple and Qualcomm "want to work together on products," as evidenced by the multiyear product deal the two signed as part of the settlement.

Part of the agreement between the two companies included a payment from Apple to Qualcomm, but Mollenkopf declined to provide further details on the size of the payment. He also refused to reveal how much Apple is paying Qualcomm per phone.

On the topic of 5G chips for future iPhones, Mollenkopf said that Qualcomm is "excited" and has the "entire team" working to support Apple. Unsurprisingly, no details were given on Apple's product plans or launch timelines for 5G connectivity.

While Apple settled with Qualcomm, Qualcomm continues to face an FTC inquiry into anticompetitive business tactics, which Mollenkopf says is still a risk to Qualcomm. He doesn't believe the Apple decision will impact what the FTC decides.Mollenkopf's full interview, which includes additional details about Qualcomm's relationship with Apple and Qualcomm's goals moving forward, can be watched on CNBC's website.

Article Link: Qualcomm CEO Steve Mollenkopf Shares Thoughts on Apple Deal but Declines to Give Specific Details
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I wouldn't get comfortable if I were Mollenkopf. Apple has learned a lesson from this. They're not going to rely on third parties who own a virtual monopoly on a major part — certainly not on one as hostile as Qualcomm. Apple isn't going to stop developing their own modem. They'll order from Qualcomm for as long as they need them but then kick them to the curb. Qualcomm better think of diversifying because their modem won't be needed for that much longer.
 
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ilikewhey said:
i don't like intel's modem and i don't like QC's business practices, and it's gonna take apple years to make an inhouse chip if they choose to spend money on it. welp, back to work i guess
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Maybe Intel will sell their IP to Apple since they are exiting that arena. That would likely help give Apple a boost.
 
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This deal pretty much solidifies the fact that apple will have its own  designed modem six years from now. After this debacle, it's not like the two companies are buddy buddy again, more like a cease fire. If anyone thinks that Apple isn't now going to double down on in-house modem design to some day break free from QC, think again.
 
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GreenPixel said:
Maybe Intel will sell their IP to Apple since they are exiting that arena. That would likely help give Apple a boost.
Click to expand...
Help me understand this. Intel couldn't make their own IP successful. How would Apple get a boost from IP that the creators couldn't make work? The only value I can think of is a blueprint for what not to do.

It would seem to me to be like some company buying the AirPower IP to get a boost.
 
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Honestly this is the best news. Given the modem problems with the iPhone XS and XS Max, Apple is right to go back to Qualcomm for the 5G chips.
 
rjp1 said:
How is it a win for Intel? lol
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Intel no longer has to direct resources at trying to develop a 5G wireless chip that can achieve Apple's "high standards"

Intel can now focus those resources at developing better PC processors to avoid Apple dropping them in favor of Apple's own custom ARM processors.
 
69Mustang said:
Help me understand this. Intel couldn't make their own IP successful. How would Apple get a boost from IP that the creators couldn't make work? The only value I can think of is a blueprint for what not to do.

It would seem to me to be like some company buying the AirPower IP to get a boost.
Click to expand...

IP includes patents. Just because they couldn't get the actual chip to work on time doesn't mean the patents aren't valuable.
 
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69Mustang said:
Help me understand this. Intel couldn't make their own IP successful. How would Apple get a boost from IP that the creators couldn't make work? The only value I can think of is a blueprint for what not to do.

It would seem to me to be like some company buying the AirPower IP to get a boost.
Click to expand...

The patents would be worthwhile, and the problem may have been a fab problem and not a design problem - perhaps apple could take the netlist and port to TSMC, for example.
 
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